Shake Shack, Inc. · NYSE:SHAK
Shake Shack — ICR Conference 2022
42 slides from Shake Shack's conference presentation, Jan 11, 2022
Slide 1: ICR Conference January 11, 2022
ICR CONFERENCE JANUARY 11, 2022 2020 Strategic Plan Meeting of the Board of Directors | Q4 2019
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, entirety by these cautionary statements. Some of the factors which could cause results to differ materially from the Company’s expectations include the impact of the C
Slide 3: 2020 Strategic Plan Meeting of the Board of Directors | Q4 2019
2020 Strategic Plan Meeting of the Board of Directors | Q4 2019 3
Slide 4: Q4 2021 Guidance & Preliminary Unaudited Results
Q 4 2 0 2 1 G U I D A N C E & P R E L I M I N A RY U N A U D I T E D R E S U LT S 1 Total Revenue: Shack System-wide Sales1: Same-Shack Sales versus 20203,4: $203.3M $314.3M +20.8% +2.2% SSS versus 2019 Licensed Revenue: Shack-level operating profit margin5: $7.4M ~16% of Shack sales 1. Estimated re
Slide 5: 2021 Guidance & Preliminary Unaudited Results
2 0 2 1 G U I D A N C E & P R E L I M I N A RY U N A U D I T E D R E S U LT S 1 Q4 2021 Revised Guidance Total revenue $203.3M Fiscal fourth quarter and Shack sales $195.9M fiscal year 2021 guidance is derived from preliminary Licensed revenue $7.4M unaudited results, based on Same-Shack sales versu
Slide 6: AWS Outpaced Historical Seasonality
AW S O U T PA C E D H I S T O R I C A L S E A S O N A L I T Y 1 AV E R A G E W E E K LY S A L E S ( AW S ) O F $ 7 4 K I N 4 Q 2 1 W E R E 2 % H I G H E R T H A N 4 Q 1 9 4Q21 AWS $74K $85K AWS $80K $79K 2019 AWS $74K $74K $71K $75K $77K $72K $72K $70K $62K $64K $58K $45K Total YoY Shack (39%) (17%)
Slide 7: SSS by Urban and Suburban Markets
SSS BY URBAN AND SUBURBAN MARKETS1 BOTH URBAN AND SUBURBAN 4Q21 SAME SHACK SALES IMPROVED VERSUS 2019 URBAN/SUBURBAN2 SAME-SHACK SALES VS PRIOR YEAR AND 20193 Second Third Fourth First Second Third Fourth Quarter Quarter Quarter Quarter Quarter Quarter Quarter 2020 2020 2020 4 2021 2021 2021 20215 5
Slide 8: SSS Performance Varied Across Regions
S S S P E R F O R M A N C E VA R I E D A C R O S S R E G I O N S 1 N Y C A N D M A N H AT T A N D R O V E S I G N I F I C A N T I M P R O V E M E N T REGIONAL2 SAME-SHACK SALES 3 VS PRIOR YEAR4 Second Third Fourth First Second Third Fourth 3Q21 4Q21 Quarter Quarter Quarter Quarter Quarter Quarter Qu
Slide 9: Digital Sales Retention Holds
D I G I TA L S A L E S R E T E N T I O N H O L D S AT ~ 8 0 % 1 , 2 , 3 A D D E D N E A R LY 1 0 % N E W P U R C H A S E R S I N C O M PA N Y - O W N E D A P P & W E B C H A N N E L S Q o Q ; 3 . 5 M T O TA L P U R C H A S E R S A C Q U I R E D S I N C E M A R C H 2 0 2 0 In-Shack Sales $ Digital Sa
Slide 10: Total Licensed Sales Rose YoY
T O TA L L I C E N S E D S A L E S R O S E 5 0 % Y O Y 1 , 2 B R O A D B A S E D M O M E N T U M A C R O S S D O E M E S T I C A N D I N T E R N AT I O N A L L I C E N S E D M A R K E T S $118.4M $111.6M Total Licensed Sales 3 $100.4M $79.1M $77.6M $69.2M $35.0M Total YoY Licensed Sales (55%) (20%)
Slide 11: Cost Pressures Remain for Foreseeable Future
COST PRESSURES REMAIN FOR FORESEEABLE FUTURE L A B O R I N V E S T M E N T S A N D C O M M O D I T Y I N F L AT I O N E X P E C T E D T O C O N T I N U E I N 2 0 2 2 Commodity costs will We'll continue to make continue to impact investments in our team member restaurant margins pay and development S
Slide 12: Shake Shack | Four Key Strategic Pillars
S H A K E S H A C K | F O U R K E Y S T R AT E G I C P I L L A R S W E A R E O N A N E N D L E S S P U R S U I T T O C R E AT E U P L I F T I N G E X P E R I E N C E S Elevating Digital Format Evolution Guest Our People Transformation & Expansion Experience 2020 Strategic Plan Meeting of the Board o
Slide 13: Shake Shack | Four Key Strategic Pillars
S H A K E S H A C K | F O U R K E Y S T R AT E G I C P I L L A R S W E A R E O N A N E N D L E S S P U R S U I T T O C R E AT E U P L I F T I N G E X P E R I E N C E S Elevating Digital Format Evolution Guest Our People Transformation & Expansion Experience Team Member development is a critical dr
Slide 14: Elevating Our People
E L E VAT I N G O U R P E O P L E FOCUS ON RETENTION AND DEVELOPMENT OF OUR CURRENT AND FUTURE EMPLOYEES We continue to invest in Established as a leading We are proud to offer Leadership development team member wage employer in the market, equity grants for Shake programs train team increases, hiri
Slide 15: Shake Shack | Four Key Strategic Pillars
S H A K E S H A C K | F O U R K E Y S T R AT E G I C P I L L A R S W E A R E O N A N E N D L E S S P U R S U I T T O C R E AT E U P L I F T I N G E X P E R I E N C E S Elevating Digital Format Evolution Guest Our People Transformation & Expansion Experience Team Member development is a True omni
Slide 16: Digital Transformation
D I G I TA L T R A N S F O R M AT I O N NEW WEBSITE AND ANDROID APP LAUNCHED IN 2021 Targeting Expanded Increased Merchandising Conversion Enhanced Shack Track Upsell Integration 2020 Strategic Plan Meeting of the Board of Directors | Q4 201916 16
Slide 17: Digital Transformation
D I G I TA L T R A N S F O R M AT I O N OFFERING A TRUE OMNICHANNEL GUEST EXPERIENCE ONLINE AND IN-SHACK S H A C K T R A C K D I G I TA L P I C K U P | D R I V E T H R U D I G I TA L M E N U S | K I O S K O R D E R I N G Digital menu boards highlight Shacks with kiosks generate more brand image and
Slide 18: Shake Shack | Four Key Strategic Pillars
S H A K E S H A C K | F O U R K E Y S T R AT E G I C P I L L A R S W E A R E O N A N E N D L E S S P U R S U I T T O C R E AT E U P L I F T I N G E X P E R I E N C E S Elevating Digital Format Evolution Guest Our People Transformation & Expansion Experience Team Member development is a True omni
Slide 19: Format Transformation with Drive-Thru
F O R M AT T R A N S F O R M AT I O N W I T H D R I V E - T H R U O P E N E D F I R S T E V E R D R I V E - T H R U I N 4 Q 2 1 I N M A P L E G R O V E , M N A N D AT L E A S T 1 0 P L A N N E D BY END OF 2022 2020 Strategic Plan Meeting of the Board of Directors | Q4 2019 19 19
Slide 20: Format Transformation with Drive-Thru
F O R M AT T R A N S F O R M AT I O N W I T H D R I V E - T H R U O P E N E D L E E ’ S S U M M I T, M O I N 4 Q 2 1 2020 Strategic Plan Meeting of the Board of Directors | Q4 2019 20 20
Slide 21: Hasbrouck Heights, NJ – Opening Soon
HASBROUCK HEIGHTS, NJ – OPENING SOON EXTERIOR FOCUSED DRIVE-THRU IN SUBURBAN NORTHERN NEW JERSEY MARKET 2020 Strategic Plan Meeting of the Board of Directors | Q4 2019 21 21 Note: Renderings for illustration purposes only. Actual Shack designs expected to evolve as sites are finalized. Image credit:
Slide 22: Additional Format Evolution and Expansion
A D D I T I O N A L F O R M AT E V O L U T I O N A N D E X PA N S I O N O A K L AW N , I L F E AT U R E S S H A C K T R A C K D R I V E - U P W I N D O W 2020 Strategic Plan Meeting of the Board of Directors | Q4 2019 22 22
Slide 23: Meatpacking, at the Base of the High Line, NYC
M E AT PA C K I N G , AT T H E B A S E O F T H E H I G H L I N E , N Y C – OPENING SOON CONTINUED URBAN GROWTH AHEAD 2020 Strategic Plan Meeting of the Board of Directors | Q4 2019 23 23 Note: Renderings for illustration purposes only. Actual Shack designs expected to evolve as sites are finalized.
Slide 24: Licensed Business Brings Shake Shack Worldwide
LICENSED BUSINESS BRINGS SHAKE SHACK WORLDWIDE OPENED 26 LICENSED SHACKS IN FY21; DEVELOPMENT PLANS WILL INCREASE PRESENCE ACROSS NEW AND EXISTING MARKETS Hangzhou, China Alabang, Philippines Monterrey, Mexico Shenzhen, China Opened 26 licensed Shacks in Increased Asian market 2022 targeting 20-25 L
Slide 25: Licensing Expansion into New and Existing Markets
L I C E N S I N G E X PA N S I O N I N T O N E W A N D E X I S T I N G M A R K E T S A N N O U N C I N G N E W M A R K E T M A L AY S I A O P E N I N G I N 2 0 2 3 United Kingdom 11 SHACKS South Korea 20 SHACKS US Licensed Turkey 25 SHACKS Japan 5 SHACKS China 12 SHACKS 12 SHACKS Mexico Hong Kong SA
Slide 26: The Londoner, Macau – Opened April 2021
THE LONDONER, MACAU – OPENED APRIL 2021 2020 Strategic Plan Meeting of the Board of Directors | Q4 2019 26 26 Note: Renderings for illustration purposes only. Actual Shack designs expected to evolve as sites are finalized. Image credit: Host International, Inc.
Slide 27: Qiantai Kooli, Shanghai – Opened July 2021
Q I A N TA N TA I K O O L I , S H A N G H A I – O P E N E D J U LY 2 0 2 1 2020 Strategic Plan Meeting of the Board of Directors | Q4 2019 27 27 Note: Renderings for illustration purposes only. Actual Shack designs expected to evolve as sites are finalized. Image credit: Host International, Inc.
Slide 28: Parc Central, Guangzhou China – Opening Soon
PA R C C E N T R A L , G U A N G Z H O U C H I N A – O P E N I N G S O O N 2020 Strategic Plan Meeting of the Board of Directors | Q4 2019 28 28 Note: Renderings for illustration purposes only. Actual Shack designs expected to evolve as sites are finalized. Image credit: Host International, Inc.
Slide 29: Westgate, Singapore – Opened October 2021
W E S T G AT E , S I N G A P O R E – O P E N E D O C T O B E R 2 0 2 1 2020 Strategic Plan Meeting of the Board of Directors | Q4 2019 29 29 Note: Renderings for illustration purposes only. Actual Shack designs expected to evolve as sites are finalized. Image credit: Host International, Inc.
Slide 30: Arboleda, Monterrey, Mexico – Opened September 2021
A R B O L E D A , M O N T E R R E Y, M E X I C O – O P E N E D S E P T E M B E R 2 0 2 1 2020 Strategic Plan Meeting of the Board of Directors | Q4 2019 30 30 Note: Renderings for illustration purposes only. Actual Shack designs expected to evolve as sites are finalized. Image credit: Host Internati
Slide 31: Dubai Hills, UAE – Opening Soon
DUBAI HILLS, UAE – OPENING SOON 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 finalized. Image credit: Host International, Inc.
Slide 32: Denver Airport – Opened July
D E N V E R A I R P O R T – O P E N E D J U LY 2 0 2 1 2020 Strategic Plan Meeting of the Board of Directors | Q4 2019 32 32 Note: Renderings for illustration purposes only. Actual Shack designs expected to evolve as sites are finalized. Image credit: Host International, Inc.
Slide 33: Dodger Stadium – Opened April
D O D G E R S TA D I U M – O P E N E D A P R I L 2 0 2 1 2020 Strategic Plan Meeting of the Board of Directors | Q4 2019 33 33 Note: Renderings for illustration purposes only. Actual Shack designs expected to evolve as sites are finalized. Image credit: Host International, Inc.
Slide 34: Junius Ponds Travel Plaza, NY – Opening Soon
J U N I U S P O N D S T R AV E L P L A Z A , N Y – O P E N I N G S O O N F U R T H E R E X PA N S I O N I N T O D O M E S T I C T R AV E L P L A Z A S , W I T H A N E W D E V E L O P M E N T A G R E E M E N T T O O P E N S H A C K S I N T R AV E L P L A Z A S W I T H A P P L E G R E E N I N T H E C
Slide 35: Shake Shack | Four Key Strategic Pillars
S H A K E S H A C K | F O U R K E Y S T R AT E G I C P I L L A R S W E A R E O N A N E N D L E S S P U R S U I T T O C R E AT E U P L I F T I N G E X P E R I E N C E S Elevating Digital Format Evolution Guest Our People Transformation & Expansion Experience Team Member development is a True omni
Slide 36: Black Truffle Brand Moment, Driving Engagement
BLACK TRUFFLE BRAND MOMENT, DRIVING ENGAGEMENT 2020 Strategic Plan Meeting of the Board of Directors | Q4 2019 36 36
Slide 37: 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 LT O S , W H I L E E L E VAT I N G C O R E M E N U W I T H P R E M I U M A D D - O N S Teaser for our next LTO, coming soon! 2020 Strategic Plan Meeting of the Board of Directors | Q4 2019 3
Slide 38: Chef Collab Series in Full Swing
CHEF COLLAB SERIES IN FULL SWING 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 38 38
Slide 39: 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 Environmental Social Governance Expanding menu with growing chicken category and Shack teams supported with investment in wages and Board of Directors consists of majority independent seats, additional vegetarian and
Slide 40: Thank You
THANK YOU 2020 Strategic Plan Meeting Board of theofBoard Directors of Directors Meeting| | Q4 202040 Q1 2019 40 40
Slide 41: Definitions – Shack-Level Operating Profit
D E F I N I T I O N S – S H A C K - L E V E L O P E R AT I N G P R O F I T Shack-Level Operating Profit operating results that are directly impacted by the Shacks and exclude items that may Shack-level operating profit is defined as Shack sales less Shack-level operating not be indicative of, or are
Slide 42: 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 42