Shake Shack, Inc. · NYSE:SHAK
Shake Shack — Q4 2021 Earnings Presentation
26 slides from Shake Shack's earnings presentation, Feb 17, 2022
Slide 1: Fourth Quarter Earnings Supplemental
FOURTH QUARTER EARNINGS SUPPLEMENTAL FEBRUARY 17, 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, thereof and other similar expressions. All forward-looking statements are expressly qualified in their entirety by these cautionary statements. Some of the factors whi
Slide 3: Q4 2021 Results
Q 4 2 0 2 1 R E S U LT S Total Revenue: Shack System-wide Sales1: Same-Shack Sales versus 20202,3: $203.3M $314.3M +20.8% +2.2% SSS versus 2019 Shack-level operating profit4: Adjusted EBITDA5: $32.2M $12.4M 16.4% of Shack sales 6.1% of Total Revenue 1. “Shack system-wide sales” is an operating measu
Slide 4: Q4 2021 Business Highlights
Q4 2021 BUSINESS HIGHLIGHTS Strong momentum in 4Q21: Shack development System-wide sales top $1.1b: Average Weekly Sales (AWS) of acceleration: Strong sales illustrate the $74,000 outperformed Opened 36 company- growing reach of the brand seasonality, driven by strong operated and 26 licensed domest
Slide 5: Strong 4Q21 Average Weekly Sales (AWS)
S T R O N G 4 Q 2 1 AV E R A G E W E E K LY S A L E S ( AW S ) SALES OUTPERFORMED SEASONALITY ON SUCCESSFUL OCTOBER PRICE INCREASE, AS WELL AS TRAFFIC-DRIVEN GAINS IN URBAN AND SUBURBAN MARKETS. 4Q21 AWS $74K $85K AWS $80K $79K 2019 AWS $74K $74K $71K $75K $77K $72K $72K $70K $62K $64K $58K $45K Tot
Slide 6: YTD 2022 Snapshot
YTD 2022 SNAPSHOT F E B R U A R Y T O D AT E S S S % + ~ 1 3 % S H O W S A M A R K E D I M P R O V E M E N T A F T E R H E A D W I N D S F R O M O M I C R O N R E A LT E D S A L E S P R E S S U R E S , L O S T H O U R S A N D C L O S U R E S I N J A N U A R Y. AWS negatively impacted by Fiscal Janua
Slide 7: Product Innovation | LTOs & Premium Add-Ons to Core
P R O D U C T I N N O VAT I O N | LT O S & P R E M I U M A D D - O N S T O C O R E O U R B L A C K T R U F F L E B U R G E R A N D F R I E S , I N I T I A L LY L A U N C H E D A S A N I N - A P P E X C L U S I V E , WA S T H E B E S T P E R F O R M I N G LT O A C R O S S O U R D I G I TA L C H A N N
Slide 8: Format Transformation | Drive-Thru
F O R M AT T R A N S F O R M AT I O N | D R I V E - T H R U U N L O C K I N G D R I V E - T H R U O P P O R T U N I T Y I N S U B U R B A N , D R I V E - T H R U H E AV Y M A R K E T S , W I T H R O L L O U T O P T I M I Z E D F O R L E A R N I N G T H R O U G H V A R I O U S D E S I G N L AY O U T
Slide 9: Focused Growth in Our Licensed Business
FOCUSED GROWTH IN OUR LICENSED BUSINESS W E E X P E C T T O O P E N 2 0 - 2 5 N E W L I C E N S E D S H A C K S I N 2 0 2 2 , B R I N G I N G O U R T O TA L S Y S T E M - W I D E C O M PA N Y - O P E R AT E D A N D L I C E N S E D U N I T S T O 4 3 4 - 4 4 4 . 171- 176 25 High Range Total Licensed S
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 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 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 2 $100.4M $79.1M $77.6M $69.2M $35.0M Total YoY Licensed Sales (55%) (20%) (11%
Slide 11: SSS % by Urban and Suburban Markets
SSS % BY URBAN AND SUBURBAN MARKETS BOTH URBAN AND SUBURBAN 4Q21 SAME SHACK SALES VERSUS 2019 IMPROVED QoQ. URBAN/SUBURBAN1 SAME-SHACK SALES VS PRIOR YEAR AND 20192 Second Third Fourth First Second Third Fourth Quarter Quarter Quarter Quarter Quarter Quarter Quarter 2020 2020 2020 3 2021 2021 2021 2
Slide 12: 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 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 I N 4 Q 2 1 . REGIONAL1 SAME-SHACK SALES 2 VS PRIOR YEAR3 Second Third Fourth First Second Third Fourth 3Q21 4Q21 Quarter Quarter Quarter Quarter Quar
Slide 13: 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 A D D E D M O R E T H A N 8 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 Y O Y ; 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 Shacks with Kiosk, Dig
Slide 14: Material Impacts to Store Margins Likely to Continue
M AT E R I A L I M PA C T S T O S T O R E M A R G I N S L I K E LY T O C O N T I N U E 1 Q 2 2 G U I D A N C E R A N G E R E F L E C T S S A L E S I M PA C T A N D D E L E V E R A G E A C R O S S M A R G I N S , A L O N G W I T H H I G H E R D E L I V E R Y M I X , O N G O I N G I N F L AT I O N A R
Slide 15: 2022 Outlook
2022 OUTLOOK Q1 2022 Guidance Carlsbad, CA Total revenue $196M-$201.4M Fiscal first quarter and fiscal year Shack sales $190M-$195M 2022 guidance is derived from preliminary unaudited results, Licensing revenue $6M-$6.4M based on information currently Same-Shack sales versus 2021 HSD to LDD % availa
Slide 16: Financial Details
Stockyards Fort Worth, TX FINANCIAL DETAILS 2020 Strategic Plan 16 Meeting Board of theofBoard Directors of Directors Meeting| | Q4 Q1 2019 2020
Slide 17: 2021 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 18: Income Statement
I N C O M E S TAT E M E N T Fiscal Quarter Ended Fiscal Year Ended (in thousands, except per share amounts) December 29, 2021 December 30, 2020 (1) December 29, 2021 December 30, 2020 (1) (1) The Company operates on a 52/53 week fiscal year that ends on the last Wednesday of the calendar year. Fisca
Slide 19: 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 20: 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 Fiscal Quarter Ended Fiscal Year Ended (1) (1) (dollar amounts in thousands) December 29, 2021 December 30, 2020 December 29, 2021 December 30, 2020 Loss from Operations(2) $ (6,493) $ (12,216) $ (15,853) $ (43,876) Less: Licensing revenue 7,377 5,0
Slide 21: 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 22: Adjusted EBITDA
ADJUSTED EBITDA (1) The Company operates on a 52/53 week fiscal year that ends on the last Wednesday of the calendar year. Fiscal Quarter Ended Fiscal Year Ended (1) (1) Fiscal 2021 contained 52 weeks and Fiscal 2020 contained 53 weeks. The additional operating week is referred (in thousands) Decemb
Slide 23: 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 24: 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 Fiscal Quarter Ended Fiscal Year Ended December 29, 2021 December 29, 2021 Income Tax Income (Loss) Income Tax Income (Loss) Expense Before Income Effective Tax Expense Before Income Effective Tax (dollar amounts in thousands) (Be
Slide 25: 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 Fiscal Quarter Ended Fiscal Year Ended December 30, 2020 December 30, 2020 Income Tax Income (Loss) Income Tax Income (Loss) Expense Before Income Effective Tax Expense Before Income Effective Tax (dollar amounts in thousands) (Be
Slide 26: 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