Slide 1: Second Quarter Earnings Supplemental
SECOND QUARTER EARNINGS SUPPLEMENTAL AUGUST 5, 2021 2020 Strategic Plan Meeting of the Board of Directors | Q4 2019 1
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, "outlook," "potential," "project," "projection," "plan," "seek," "may," "could," "would," "will," "should," "can," "can have," "likely," the negatives thereof and othe
Slide 3: Q2 2021 Results
Q 2 2 0 2 1 R E S U LT S Total Revenue: Shack system-wide sales1: Same-Shack Sales versus 20202,3: $187M $282M +52.7% +104.2% YoY +127.7% YoY (12.4%) decrease in SSS versus 2019 Shack-level operating profit4: Adjusted EBITDA5: $34.8M $20.6M 19.2% of Shack sales 11.0% of Total Revenue 1. “Shack syste
Slide 4: Business Highlights
BUSINESS HIGHLIGHTS In-Shack Come Back: Standing Together: Strong New Openings and Average weekly sales (AWS)1 Investing $10M in Shack team Development: improvement, at $72K in Q2, with wage increases and Class of 2021 AWS $81K and driven by the return of in- retention bonuses over next opened 19 Co
Slide 5: Fiscal July 2021 Snapshot
F I S C A L J U LY 2 0 2 1 S N A P S H O T Building Sales Momentum: Strong New Shack Sales: SSS vs 2020 Recovery: $74K $81K 38% Fiscal July AWS, Fiscal July Class of 2021 AWS; Increase in fiscal July SSS up from $64K in Q1 ~20% higher than rest of versus 20201 Company-operated Shacks SSS vs 2019 Imp
Slide 6: Investing Additional $10M in Shack Team Over Next 12 Months
INVESTING ADD’L $10M IN SHACK TEAM OVER NEXT 12 MONTHS W E A R E F O C U S E D O N R E TA I N I N G A N D D E V E L O P I N G O U R C U R R E N T A N D F U T U R E E M P L O Y E E S Announced an additional Also providing $1M in Shake Shack is proud to Leadership development investment of more than h
Slide 7: Average Weekly Sales Recovery Continues
AV E R A G E W E E K LY S A L E S R E C O V E RY C O N T I N U E S H I G H L E V E L S D R I V E N P R E D O M I N AT E LY B Y I N - S H A C K S A L E S > 3 0 0 % I N Q 2 2 0 2 1 V E R S U S 2 0 2 0 Q2 AWS $72K $74K $74K $71K AWS $69K $64K $62K $58K $45K Total YoY Shack Sales Growth / (Decline) (39%
Slide 8: Ongoing Urban Recovery Driving Company Improvement
O N G O I N G U R B A N R E C O V E RY D R I V I N G C O M PA N Y I M P R O V E M E N T S U B U R B A N H O L D I N G S T E A D Y AT 2 0 1 9 L E V E L S URBAN/SUBURBAN1 SAME-SHACK SALES VS PRIOR YEAR AND 20192 Second Quarter Third Quarter Fourth Quarter First Quarter Fiscal April Fiscal May Fiscal J
Slide 9: Broad Based Same Shack Sales Improvement Across All Regions
BROAD BASED SAME SHACK SALES IMPROVEMENT ACROSS A L L R E G I O N S , L E D B Y N Y C R E C O V E RY REGIONAL1 SAME-SHACK SALES 2 VS PRIOR YEAR3 Fiscal Fiscal Second Quarter Third Quarter Fourth Quarter First Quarter Fiscal April Fiscal May Fiscal June Fiscal July April July 2020 2020 2020 4 2021 20
Slide 10: Retained ~80% of Digital Sales as In-Shack Recovers
R E TA I N E D ~ 8 0 % O F D I G I TA L S A L E S A S I N - S H A C K R E C O V E R S 1 , 2 ~ 1 7 % I N C R E A S E O F 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 , 2 . 8 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-Shac
Slide 11: Class of 2021 Openings: AWS ~20% Above Rest of Company
C L A S S O F 2 0 2 1 O P E N I N G S : AW S ~ 2 0 % > R E S T O F C O M PA N Y 1 9 S H A C K S O P E N E D A S O F F I S C A L J U LY, 3 5 - 3 8 S H A C K S T O TA L I N 2 0 2 1 ; 4 5 - 5 0 O P E N I N G 2 0 2 2 New Shacks will incorporate elements of Shack Track digital experience, delivering grea
Slide 12: Targeting 10 Drive Thru Openings Through 2022
TA R G E T I N G 1 0 D R I V E T H R U O P E N I N G S T H R O U G H 2 0 2 2 D Y N A M I C D E S I G N S W I L L E L E VAT E T H E D R I V E T H R U G U E S T E X P E R I E N C E A N D P R O V I D E CONVENIENCE First drive thru opening in 2021; Drive thrus incorporate enlightened milestone in multi-
Slide 13: Licensed Business Strengthened in Q2
LICENSED BUSINESS STRENGTHENED IN Q2 D O M E S T I C T R AV E L , S TA D I U M V E N U E R E O P E N I N G S A N D C E R TA I N I N T E R N AT I O N A L M A R K E T S D R O V E I M P R O V E M E N T S , W H I L E C O V I D - I M PA C T E D G L O B A L M A R K E T S R E M A I N V O L AT I L E $8.6M $
Slide 14: Licensed Business Global Footprint Expansion
L I C E N S E D B U S I N E S S G L O B A L F O O T P R I N T E X PA N S I O N 15 Shacks opened 20-25 Shacks targeted in Strong class of 2021; Expanded development through fiscal July, 20-251 2022 in new and existing opening of first Shack in agreement with partners total expected for fiscal markets
Slide 15: Focus on Culinary Innovation
F O C U S O N C U L I N A RY I N N O VAT I O N LT O C A L E N D A R F E AT U R E S C H I C K E N A N D S E A S O N A L L E M O N A D E S . L I F T I N AV E R A G E IN-SHACK CHECK IN Q2 VERSUS Q1 DRIVEN BY POPULAR BEVERAGE OFFERINGS 2020 Strategic Plan Meeting of the Board of Directors | Q4 2019 15 1
Slide 16: 2021 Outlook
2021 OUTLOOK Q3 2021 Guidance Q3 and full year 2021 guidance is derived from recent trends and does not assume Total revenue $194M to $200M material changes to the current operating environment, inclusive of any potential Shack sales $188M to $193M further COVID impacts Licensed revenue $6M to $7M S
Slide 17: Margin Pressures Including Labor Investments Expected in Q3
MARGIN PRESSURES INCLUDING LABOR INVESTMENTS EXPECTED IN Q3 COMMITTED TO SUPPORT TEAM MEMBER RETENTION AND DEVELOPMENT Anticipated impact of investments in team wages and training as well as resumption of select costs as guests come back to dining rooms 17% High 19.2% 14.8% 16.0% 15.0% 15% Low 2.2%
Slide 18: Financial Details
FINANCIAL DETAILS 2020 Strategic Plan Meeting Board of the ofBoard Directors of Directors Meeting| | Q1 Q4 2020 2019
Slide 19: Methodology for Same-Shack Sales Calculation
2 0 2 1 M E T H O D O L O G Y F O R S A M E - S H A C K S A L E S C A L C U L AT I O N Notes Fiscal Calendar Comparisons Reason for Shifted Weeks: Given the 53rd fiscal week in 2020 the comparison periods for 2021 Same-Shack Sales have been shifted one week forward in both 2019 & 2020 to ensure comp
Slide 20: Income Statement
I N C O M E S TAT E M E N T Thirteen Weeks Ended Twenty-Six Weeks Ended June 30, 2021 June 24, 2020 June 30, 2021 June 24, 2020 (1) As a percentage of Shack sales. Shack sales $ 181,470 96.8% $ 89,519 97.5% $ 332,138 96.9% $ 227,567 96.9% Licensing revenue 5,990 3.2% 2,267 2.5% 10,604 3.1% 7,389 3.1
Slide 21: 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 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 u
Slide 22: 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 Twenty-Six Weeks Ended (dollar amount in thousands) June 30, 2021 June 24, 2020 June 30, 2021 June 24, 2020 Operating income (loss) $ 3,307 $ (24,075) $ (6,714) $ (24,862) Less: Licensing revenue 5,990 2,267 10,604 7,389 Add: -
Slide 23: Adjusted EBITDA Definitions
ADJUSTED EBITDA DEFINITIONS EBITDA and Adjusted EBITDA How These Measures Are Useful EBITDA is defined as Net income (loss) before interest expense (net of interest When used in conjunction with GAAP financial measures, EBITDA and adjusted income), Income tax expense (benefit) and Depreciation and a
Slide 24: Adjusted EBITDA
ADJUSTED EBITDA Thirteen Weeks Ended Twenty-Six Weeks Ended (dollar amounts in thousands) June 30, 2021 June 24, 2020 June 30, 2021 June 24, 2020 Net income (loss) $ 2,065 $ (18,031) $ 2,640 $ (19,110) Depreciation and amortization expense 14,472 12,089 28,198 23,857 (1) Represents amortization of c
Slide 25: Adjusted Pro Forma Effective Tax Rate Definitions
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 D E F I N I T I O N S Adjusted Pro Forma Effective Tax Rate Limitations of the Usefulness of this Measure Adjusted pro forma effective tax rate represents the effective tax rate assuming the Adjusted pro forma effective tax rate may diffe
Slide 26: 2021 Adjusted Pro Forma Effective Tax Rate
2 0 2 1 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 Fiscal Year Ended June 30, 2021 June 30, 2021 Income Tax Income (Loss) Expense Before Income Effective Tax Income Tax Income Before Effective (dollar amounts in thousands) (Benefit) Taxes Rate Expense Income T
Slide 27: 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 Fiscal Year Ended June 24, 2020 June 24, 2020 Income Tax Income (Loss) Expense Before Income Effective Tax Income Tax Income Before Effective (dollar amounts in thousands) (Benefit) Taxes Rate Expense Income T
Slide 28: 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