Slide 1: Q2 2018 Supplemental Earnings Slides
SHAKE SHACK’ Q2 2018 Supplemental Earnings Slides August 2, 2018
Slide 2: Cautionary Note on Forward-Looking Statements
Cautionary Note on Forward-Looking Statements G2 Second Quarter 2018 | This presentation contains forwardlooking 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 t
Slide 3: Earnings Highlights
Earnings Highlights Second Quarter 2018 Total Revenue ($M) 127% $91 $116 Q2'17 Q2'18 Adjusted EBITDA! ($M) 413% Q2'17 Q2'18 OD Five domestic, company-operated Shacks and six licensed Shacks opened in the Second Quarter Remain on track to open 32 to 35 new domestic, company-operated Shacks by the end
Slide 4: Consistent, Strong Performance
Consistent, Strong Performance Second Quarter 2018 Total Revenue ($M) ee 1. Tt “Eh 13 14 q q Q2'18 TTM 2 Shack System-wide Sales! ($M) se $532? $403 S140) 13 14 q 17 Q2'18 TT™M 2 1. See appendix for definition 2. Represents trailing twelve months (TTM) as of Q2 ‘18 periodend. Note: CAGR is the compo
Slide 5: Development Pipeline Remains Strong
Development Pipeline Remains Strong Second Quarter 2018 Domestic Company-Operated Shacks (At Period End) OD 2018 Development Spread Across New and Existing Markets 150 125 122-125 100 CAGR 45% 75 15 50 25 21 49 ° NE fon zN | © SE wo = FS oO = Fs fo K N = § wo ~ Ke "12 13 14 15 16 17 ‘18E Note: CAGR
Slide 6: Domestic Development Timing Outlook
Domestic Development Timing Outlook Second Quarter 2018 OD Domestic Company-Operated Shacks 2018 Domestic Development Back (At Period End FY 2017 vs. FY 2018E) Weighted Heavily in Fourth Quarter 14-16 On track to open 32 - 35 domestic Shacks by the end of 2018 although timing is heavily backend weig
Slide 7: 100% 12% 11% 90% 24% 29% 29% 80% 70% 38% 60% 35% 35% 34%
100% 12% 11% 90% 24% 29% 29% 80% 70% 38% 60% 35% 35% 34% 50% 40% 30% 56% 51% 20% 41% 37% 10% 0% 7
Slide 8: Licensing Growth Strong with Focus on Asia
Licensing Growth Strong with Focus on Asia Second Quarter 2018 OGD Licensed Shacks (At Period End) Expansion of International Markets 100 4 90 | 85-87 80 + 70 + CAGR 49% 60 + 50 + 40 5 10 4 "12 13 ‘14 15 ‘16 7 "18E MN Middle East, Turkey, Russia {jus mux HB Japan, Korea Note: CAGR is the compounded
Slide 9: Appendix
Appendix INCLUDING GAAP AND NON-GAAP MEASURES OD
Slide 10: Shack sales, Licensing revenue, Total revenue
Thirteen Weeks Ended Twenty-Six Weeks Ended June 27, 2018 June 28, 2017 June 27, 2018 June 28, 2017 Shack sales $ 112,898 97.1% $ 88,003 96.4% $ 208,987 97.0% $ 162,158 96.5% Licensing revenue 3,384 2.9% 3,313 3.6% 6,411 3.0% 5,907 3.5% TOTAL REVENUE 116,282 100.0% 91,316 100.0% 215,398 100.0% 168,0
Slide 11: Definitions
Definitions Second Quarter 2018 OGD “Adjusted EBITDA,” a nonGAAP measure, is defined as EBITDA excluding equitybased compensation expense, deferred rent expense, losses on the disposal of property and equipment, as well as certain nonrecurring items that the Company does not believe directly reflect
Slide 12: Shack-Level Operating Profit Definition
Shack-Level Operating Profit Definition Second Quarter 2018 OD Shack-Level Operating Profit Shacklevel operating profit is defined as Shack sales less Shacklevel operating expenses, including food and paper costs, labor and related expenses, other operating expenses and occupancy and related expense
Slide 13: Shack-Level Operating Profit Reconciliation
Thirteen Weeks Ended Twenty-Six Weeks Ended (dollar amounts in thousands) June 27, 2018 June 28, 2017 June 27, 2018 June 28, 2017 Operating income $ 13,018 $ 11,737 $ 19,532 $ 17,365 Less: Licensing revenue 3,384 3,313 6,411 5,907 Add: General and administrative expenses 12,587 9,678 24,396 18,148 D
Slide 14: Adjusted EBITDA Definition
Adjusted EBITDA Definition Second Quarter 2018 OD 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
Slide 15: Adjusted EBITDA Reconciliation
Thirteen Weeks Ended Twenty-Six Weeks Ended (in thousands) June 27, 2018 June 28, 2017 June 27, 2018 June 28, 2017 Net income $ 10,571 $ 8,184 $ 15,550 $ 12,046 Depreciation expense 6,968 5,258 13,466 10,006 Interest expense, net 613 347 1,171 630 Income tax expense 2,240 3,385 3,438 5,043 EBITDA 20
Slide 16: Investor 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