Shake Shack, Inc. · NYSE:SHAK
Shake Shack — ICR Conference 2025
32 slides from Shake Shack's conference presentation, Jan 13, 2025
Slide 1: ICR Conference, January 13, 2025
ICR CONFERENCE JANUARY 13, 2025
Slide 2: Cautionary Note on Forward-Looking Statements
C AU T I O N A RY N O T E O N F O R WA R D - LO O K I N G S TAT E M E N T S This presentation contains forward-looking statements, cautionary statements. Some of the factors which could cause results to differ materially from the Company’s expectations or cause the Company to not meet its long-term
Slide 3: Shaking It Up in 2024 & just getting started!
SHAKING IT UP IN 2024 & just getting started!
Slide 4: 450 Shacks target from 2015 IPO
TARGET GIVEN IN CONJUNCTION WITH THE 2015 IPO: COMPANY-OPERATED DOMESTIC FOOTPRINT OF AT LEAST 450 SHACKS VS 31 COMPANY- OPER ATED SHACKS OPEN AT THE TIME
Slide 5: 2015 IPO targets vs today
TARGETS PROVIDED IN CONJUNCTION WITH SHAKE SHACK’S 2015 IPO: NEW COMPANY-OPERATED SHACK OPENINGS 1 IN THE RANGE OF: AVERAGE UNIT RESTAURANT-LEVEL SHACK CASH-ON-CASH 2 VOLUMES PROFIT MARGIN NET BUILD COST RETURNS $2.8M - $3.2M 18% - 22% $1.5M - $2.5M 30% - 33% VS TODAY: COMPANY-OPERATED SHACKS IN COM
Slide 6: New footprint target of at least 1,500 Shacks
WE NOW SEE OUR NEW COMPANY-OPERATED SHACK FOOTPRINT TARGET TO BE AT LEAST 1,500 SHACKS
Slide 7: Updated Shack-onomics
UPDATED SHACK-ONOMICS: NEW COMPANY-OPERATED SHACK OPENINGS 1 IN THE RANGE OF: AVERAGE UNIT RESTAURANT-LEVEL SHACK CASH-ON-CASH 2 3 VOLUMES PROFIT MARGIN NET BUILD COST RETURNS AT LEAST $2.8M - $4.0M 18% - 24% $1.5M - $3.0M 30% - 33% 1. Shack-onomics represents the range we generally expect to target
Slide 8: Three Year Financial Targets
THREE YEAR FINANCIAL TARGETS 1 IN THE RANGE OF: TOTAL REVENUE SYSTEM-WIDE RESTAURANT-LEVEL ADJUSTED EBITDA 2 2 GROWTH UNIT GROWTH PROFIT MARGIN GROWTH LOW LOW AT LEAST LOW – TEENS % TEENS % APPROX 22% MID TEENS % 1. These targets reflect metrics for fiscal years 2025, 2026 and 2027. FY2025 has 53 we
Slide 9: 2025 Strategic Priorities
2025 STRATEGIC PRIORITIES 1. BUILD A CULTURE OF LEADERS 2. OPTIMIZE RESTAURANT OPERATIONS 3. DRIVE COMP SALES BY INCREASING GUEST FREQUENCY 4. BUILD & OPERATE OUR SHACKS WITH BEST-IN-CLASS RETURNS 5. ACCELERATE OUR LICENSED BUSINESS 6. INVEST IN LONG-TERM STRATEGIC CAPABILITIES
Slide 10: Build a Culture of Leaders
> 1, A BUILD A GULTURE \OF LEADERS
Slide 11: Shifting-Up Our Leadership Pipeline for Growth
SHIFTING-UP OUR LEADERSHIP PIPELINE FOR GROWTH DE VELOPING TA L E N T High performing hourly team members are nominated and selected for Shift-Up, our 18-week intensive development program designed to accelerate career growth. LEADERSHIP The program’s core focus is on developing our team’s leadershi
Slide 12: Optimize Restaurant Operations
OP TIMIZE RESTAUR ANT OPER ATIONS
Slide 13: Operations Focus: People
O P ER ATIONS FOCUS PEOPLE We are building strong teams through staffing, training and retention strategies to ensure a solid foundation … PERFORMANCE … so that we can deliver a great guest experience … PROFITS … and optimize the long-term profitability of our Shacks.
Slide 14: Operations Focus: Labor
O P ER ATIONS FOCUS LABOR MANAGEMENT We are optimizing our hourly staffing and enhancing training to provide a great guest experience. ONE BEST WAY We are improving and standardizing our operating procedures and kitchen design. FOCUS ON GUEST EXPERIENCE We are improving wait times, order accuracy, a
Slide 15: Drive Comp Sales by Increasing Guest Frequency
DRIVE COMP SALES BY INCRE ASING GUEST FREQUENC Y
Slide 16: Driving Frequency in 2025
DRIVING FREQUENCY IN 2025 C U L I N A RY OPTIMIZING M O R E WAYS T O I N N OVAT I O N OUR CORE MENU SURPRISE & DELIGHT OFFERINGS OUR GUESTS
Slide 17: Investing in Guest Recognition Capabilities
INVESTING IN GUEST RECOGNITION CAPABILITIES CONNECTING THE DOTS TO DELIVER HOSPITALITY & DRIVE FREQUENCY ACROSS OUR CHANNELS APP & WEB IN- SHACK KIOSK
Slide 18: Build & Operate Our Shacks with Best-in-Class Returns
BUILD & OPER ATE OUR SHAC KS WITH BEST-IN- CL ASS RE TURNS 18
Slide 19: Strategic Approach to Development
STRATEGIC APPROACH TO DEVELOPMENT PROVEN TRACK RECORD We have 329 Company-operated Shacks domestically that have performed well and generated industry- leading returns across a wide variety of regions, and in both urban and suburban markets. INTERNAL DATA & ANALYTICS Our internally developed data-dr
Slide 20: Continue to Reduce New Shack Build Costs
CONTINUE TO REDUCE NEW SHACK BUILD COSTS $2.6M $2.5M $2.4M $2.2M WE EXPECT FY2025 NEW SHACK BUILD COSTS TO BE ~15% LESS THAN FY2023. 2022 2023 2024E 2025E 1 Net Build Cost by Shack Class 1. Net build costs exclude permanent Shack closures and include tenant allowance. PROCESS SCALE DESIGN FORMATS Cl
Slide 21: Optimizing Development Process
OPTIMIZING DEVELOPMENT PROCESS STRATEGIC INVESTMENTS Building out capabilities in development will condense build timelines by nearly two months, with increased consistency and lower cost. SCALE BENEFITS Getting denser in key markets to drive marketing, supply chain, and labor efficiencies. STANDARD
Slide 22: Financial Overview
FINA N C IA L OV ERV IE W
Slide 23: 4Q FY2024 Preliminary Unaudited Results
4QF Y2024 P R E L I M I N A R Y U N A U D I T E D R E S U LT S 1 TOTAL SAME-SHACK SALES COMPANY-OPERATED REVENUE VS 2023 SHACK AUV $329M ~4.3% $4.1M ~15% Y/Y RESTAURANT-LEVEL ADJUSTED PROFIT MARGIN2 EBITDA2 ~22.7% ~$46M 290 BPS +48% Y/Y EXPANSION Y/Y 1. These forward-looking projections are subject
Slide 24: FY2024 Preliminary Unaudited Results
F Y2024 P R E L I M I N A R Y U N A U D I T E D R E S U LT S 1 TOTAL SYSTEM-WIDE NEW SHACK OPENS REVENUE SALES SYSTEM-WIDE3 $1.25b $1.9b 76 ACROSS 579 SHACKS 15% Y/Y UNIT GROWTH +15% Y/Y 43 CO-OPERATED OPENINGS GLOBALLY 33 LICENSED OPENINGS RESTAURANT-LEVEL ADJUSTED PROFIT MARGIN2 EBITDA2 ~21.4% ~$1
Slide 25: FY2025 Guidance Highlights
F Y 2025 GUIDANCE H IGHLIGHTS1 NEW SHACK TOTAL SAME-SHACK SALES OPENINGS REVENUE vs 2024 SYSTEM-WIDE $1.45b - $1.48b ~3% ~80 - 85 +16% - +18% Y/Y 14% - 15% Y/Y Unit Growth RESTAURANT-LEVEL ADJUSTED PROFIT MARGIN2 EBITDA2 ~22.0% $200m – $210m 60BPS EXPANSION Y/Y +14% - +20% Y/Y 1. These forward-looki
Slide 26: 2024 Preliminary Unaudited Results
2024 P R EL IM INA RY UNAUD I T ED R E S ULT S 1 Q4 2024 Preliminary Results Company-operated openings 19 Licensed openings 9 Total revenue $328.7m Licensing revenue $12.1m Same-Shack sales versus 2023 ~4.3% Restaurant-level profit margin ~22.7% FY 2024 Preliminary Results Company-operated openings
Slide 27: FY2025 Guidance
F Y 2025 G uid an ce 1 Company-operated openings Approximately 45 Licensed openings ~ 35 - 40 Total revenue ~$1.45b – $1.48b Licensing revenue $49m - $51m Same-Shack sales versus 2024 Approximately +3.0% Restaurant-level profit margin Approximately 22.0% General and administrative expenses Approxima
Slide 28: Thank You
THANK YOU
Slide 29: Definitions – Restaurant-Level Profit
D E FINI T IO NS – R E S TAUR AN T -L E V EL P RO FI T The Company is not able to reconcile the expected preliminary guided non-GAAP estimates to the most How This Measure Is Useful directly comparable GAAP financial measures without unreasonable effort because it is unable to predict, When used in
Slide 30: Definitions – Adjusted EBITDA
D E FINI T IO NS – A DJUS T ED EB I T DA The Company is not able to reconcile the expected preliminary guided non-GAAP estimates to the most How This Measure Is Useful directly comparable GAAP financial measures without unreasonable effort because it is unable to predict, When used in conjunction wi
Slide 31: Definitions – Pro Forma Effective Tax Rate
D E FINI T IO NS – P RO FO R M A E FFE C T I V E TA X R AT E The Company is not able to reconcile the expected preliminary guided non-GAAP estimates to the most How This Measure Is Useful directly comparable GAAP financial measures without unreasonable effort because it is unable to predict, When us
Slide 32: Contact Information
C O N TAC T INFO R M AT ION The image part with relationship ID rId7 was not found in the file. INVESTOR CONTACT Melissa Calandruccio, ICR Michelle Michalski, ICR (844) Shack-04 (844-742-2504) investor@shakeshack.com MEDIA CONTACT Meg Davis, Shake Shack mdavis@shakeshack.com 32