Slide 1: Q1 2018 Supplemental Earnings Slides
Q1 2018 Supplemental Earnings Slides May 3, 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
Earnings Highlights First Quarter 2018 Total Revenue ($M) Shack-Level Operating Profit1 ($M) +29% +26% $99 $24 $77 $19 Q1 ’17 Q1 ’18 Q1 ’17 Q1 ’18 Operating Income ($M) Adjusted EBITDA1 ($M) +17% +33% $7 $16 $6 $12 Q1 ’17 Q1 ’18 Q1 ’17 Q1 ’18 1. Shack-Level operating profit and adjusted EBITDA are n
Slide 4: Consistent, Strong Performance into 2018
Consistent, Strong Performance into 2018 Total Revenue ($M) Cash Flow from Operations ($M) CAGR 45% CAGR 53% $359 $381 $71 $80 $268 $54 $191 $41 $82 $119 $13 $14 ’13 ’14 ’15 ’16 ’17 Q1 ’18 ’13 ’14 ’15 ’16 ’17 Q1 ’18 TTM 2 TTM 2 System-wide Shack Count Shack System-wide Sales1 ($M) (At Period End) CA
Slide 5: NYC Share of Same-Shack Sales Declining, but Comp Base Remains Majority Mid-Atlantic Corridor
NYC Share of Same-Shack Sales1 Declining, but Comp Base Remains Majority Mid-Atlantic Corridor Composition of Same-Shack Sales1 100% 11% As of Q1 2018, New York City represented 12% 90% 24% 25% of our Same-Shack Units, but 36% of 29% our Same-Shack Sales1 80% 70% 32% 38% NYC weighting gradually decr
Slide 6: Development Pipeline and 2018 Opening Plan Remain Strong
Development Pipeline and 2018 Opening Plan Remain Strong Domestic Company-Operated Shacks 2018 Development Spread Across (At Period End) New and Existing Markets 150 Q1 2018 Openings Represent Continued Geographic Diversity 125 122 - 125 • Houston, TX • Downtown LA, CA 100 • Denver, CO CAGR 45% 90 •
Slide 7: Licensing Growth Consistently Strong, with Focus on Asia
Licensing Growth Consistently Strong, with Focus on Asia Licensed Shacks (At Period End) Expansion of International Markets Operating globally through licensed 100 partnerships in 12 countries as of Q1 2018 90 85 - 87 First Hong Kong Shack, located at the IFC 80 Mall, opened May 1st 69 70 Significan
Slide 8: Income Statement
Income Statement First Quarter 2018 Thirteen Weeks Ended March 28, 2018 March 29, 2017 Shack sales $ 96,089 96.9% $ 74,155 96.6% Licensing revenue 3,027 3.1% 2,594 3.4% TOTAL REVENUE 99,116 100.0% 76,749 100.0% Shack-level operating expenses(1): Food and paper costs 26,955 28.1% 21,174 28.6% Labor a
Slide 9: Appendix
Appendix INCLUDING GAAP AND NON-GAAP MEASURES 9
Slide 10: 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 11: 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 12: Shack-Level Operating Profit
Shack-Level Operating Profit Thirteen Weeks Ended (dollar amounts in thousands) March 28, 2018 March 29, 2017 Operating income $ 6,514 $ 5,628 Less: Licensing revenue 3,027 2,594 Add: General and administrative expenses 11,809 8,470 Depreciation expense 6,498 4,748 Pre-opening costs 2,029 2,415 Loss
Slide 13: 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 14: Adjusted EBITDA
Adjusted EBITDA Thirteen Weeks Ended (in thousands) March 28, 2018 March 29, 2017 Net income $ 4,979 $ 3,862 Depreciation expense 6,498 4,748 Interest expense, net 558 283 Income tax expense 1,198 1,658 EBITDA 13,233 10,551 Equity-based compensation 1,437 1,249 Deferred rent 69 225 Loss on disposal
Slide 15: Investor Contact / Media Contact
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 15