Slide 1: Jewel Changi Airport, Singapore
Jewel Changi Airport, Singapore 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: We are relentlessly focused on excellence, experience and hospitality
We are relentlessly focused on excellence, experience and hospitality 2019 Strategic Commitments
Slide 4: Q1 2019 highlights
Q1 2019 highlights +3.6% $133M $195M Growth in Total Revenue Shack System-wide Same-Shack +34% YoY Sales2 Sales1 +34% YoY $4.3M $17.8M 12 $27.0M Average Adjusted New Company- Shack-Level Unit Volume3 EBITDA4 Operated and Licensed Operating Profit4 +10% YoY Shacks opened in Q1 +13% YoY 1. "Same-Shack
Slide 5: Consistent, strong performance
Consistent, strong performance Total Revenue ($M) Cash Flow from Operations ($M) CAGR 28% CAGR 34% $459 $493 $85 $84 $359 $71 $268 $54 $191 $41 '15 '16 '17 '18 Q1 '19 '15 '16 '17 '18 Q1 '19 TTM TTM Shack System-wide Sales1 ($M) System-wide Shack Count CAGR 32% CAGR 35% $672 $721 208 218 $532 159 $40
Slide 6: First quarter updates
First quarter updates • New Shack development pipeline remains robust both domestically and internationally, supporting continued growth in new markets and further penetration of existing markets o New company-operated markets of Providence, New Orleans, Columbus and Salt Lake City launching in 2019
Slide 7: Committing to excellence in our people
Committing to excellence in our people 'All-In' ~60% 4 - Day 100% Launched Shake Promotions earned by Workweek testing Human Rights Shack’s Diversity women across all in select markets Campaign 2019 & Inclusion Shacks in 2018 to attract & retain Corporate Equality Program talent Index 7
Slide 8: Domestic company-operated development remains strong
Domestic company-operated development remains strong 36 to 40 New Shacks in 2018 Domestic Company-Operated Shacks 5 >80% Shacks opened in the Shacks outside of NYC 200+ First Quarter New York City1 Other 160 - 164 ~80% Shacks in existing vs. new markets 43% planned for 2019 124 CAGR from 2012 to 201
Slide 9: Global licensing expansion remains sizeable
Global licensing expansion remains sizeable with focus on Asia and domestic airports Licensed Shacks 1st International office planned in Middle East, Turkey, Russia UK 120+ 7 Hong Kong to support growth 8 Japan, Korea, Hong Kong Licensed Shacks opened Airport locations in the U.S. US 100 - 102 in th
Slide 10: Driving excitement through exclusive collaborations and events
Driving excitement through exclusive collaborations and events Game of ThronesTM Collab Coachella 2019 Dominque Ansel Collab Crowd Cow ATX Burger 10
Slide 11: Fiscal year 2019 guidance
Fiscal year 2019 guidance These forward-looking projections are subject to known and unknown risks, uncertainties and other important factors that may cause actual results to be materially different. Factors that might cause such differences include, but are not limited to, those discussed in Part I
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Slide 13: Impact of New Accounting Standard
Impact of New Accounting Standard First Quarter 2019 Balance Sheet changes Balance Sheet impact from the adoption of the new Right-of-use asset & lease liabilities lease accounting standard • Net increase to total assets of $218 million Landlord funded assets & deemed landlord financing liabilities
Slide 14: Definitions
Definitions First Quarter 2019 “Adjusted EBITDA,” a non-GAAP measure, is defined as EBITDA (as defined above), excluding equity-based compensation expense, deferred lease costs, losses on the disposal of property and equipment, as well as certain non-recurring items that the Company does not believe
Slide 15: Income Statement
Income Statement First Quarter 2019 Thirteen Weeks Ended (in thousands, except per share amounts) March 27, 2019 March 28, 2018 Shack sales $ 128,569 97.0% $ 96,089 96.9% Licensing revenue 4,040 3.0% 3,027 3.1% TOTAL REVENUE 132,609 100.0% 99,116 100.0% Shack-level operating expenses(1): Food and pa
Slide 16: Shack-Level Operating Profit Definitions
Shack-Level Operating Profit Definitions First Quarter 2019 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
Slide 17: Shack-Level Operating Profit
Shack-Level Operating Profit First Quarter 2019 Thirteen Weeks Ended (dollar amounts in thousands) March 27, 2019 March 28, 2018 Operating income $ 5,162 $ 6,514 Less: Licensing revenue 4,040 3,027 Add: General and administrative expenses 13,937 11,809 Depreciation expense 8,966 6,498 Pre-opening co
Slide 18: Adjusted EBITDA Definitions
Adjusted EBITDA Definitions First Quarter 2019 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 com
Slide 19: Adjusted EBITDA
Adjusted EBITDA First Quarter 2019 Thirteen Weeks Ended (in thousands) March 27, 2019 March 28, 2018 Net income $ 3,607 $ 4,979 Depreciation expense 8,966 6,498 Interest expense, net 72 558 Income tax expense 2,047 1,198 EBITDA 14,692 13,233 Equity-based compensation 1,720 1,437 (1) Deferred lease c
Slide 20: Adjusted Pro Forma Effective Tax Rate
Adjusted Pro Forma Effective Tax Rate First Quarter 2019 Thirteen Weeks Ended March 27, 2019 Income Tax Income Before Effective Tax (in thousands) Expense Income Taxes Rate As reported $ 2,047 $ 5,654 36.2% Non-GAAP adjustments (before tax): Executive transition costs 38 Project Concrete 472 Other i
Slide 21: 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 21