Shake Shack, Inc. · NYSE:SHAK
Shake Shack — Investor Presentation (June 2015)
36 slides from Shake Shack's investor presentation, June 2015
Slide 1: Investor Presentation June 2015
frit An iC) hie SHAKE 3 SHACK’ Investo Presentation June 2015
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties. All statements other than statements of historical fact are forward-looking statements. Forward-
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Slide 4: Menu
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Slide 6: Key Shack Leaders
Key 3hack Leade iC) Randy Garutti Chief Executive Officer Jeff Uttz Chief Financial Officer Danny Meyer Chairman of the Board TED) ¢ # 6 @ 6 6 2 shack 29 6 wf 4 ®
Slide 7: What makes Shake Shack special?
} What makes Shake 3hack special? Our culture of Enlightened Hospitality: Taking care of each other Leaders training future leaders Fine Casual: Inspired food and drink Beloved lifestyle brand Versatile real estate model built for growth The Shack travels abroad Shack-onomics @ 8 6 @ 8 § & sHakeSsua
Slide 8: Shack count by type
Domestic company-operated Domestic licensed International licensed 66 63 27 27 40 5 5 15 21 4 14 5 34 2 3 31 7 21 3 2 13 9 5 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 Q1 2015 8
Slide 9: Domestic Shacks as of June 2015
Domestic $hacks as of June 2015* SHAKE SHACK’
Slide 10: Shacks by region and international
Metro New York : 13 UK: 1 Mid-Atlantic: 5 Turkey: 2 Northeast: 4 Middle East: 12 Southeast: 3 Russia: 1 10 2013
Slide 11: Revenue FY2010-FY2014
$119 $82 $57 $39 $19 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 11
Slide 12: System-wide Sales ($mm)
System-wide Sales ($mm) $217 $140 $81 $53 $21 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 12
Slide 13: Shack-level operating profit and margin
Margin (%) $20 $19 30% 25% $16 $14 20% 18% 18% $12 16% 16% 14% $10 15% $8 $6 10% $4 $3 5% $0 0% FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 13
Slide 14: Q1 revenue and system-wide sales
Revenue System-wide sales $40,000 $37,808 $70,000 $64,303 $60,000 $30,000 $46,252 $50,000 $24,196 $40,000 $20,000 $30,000 $20,000 $10,000 $10,000 $0 $0 Q1 '14 Q1 '15 Q1 '14 Q1 '15 In thousands, except percentage amounts 14
Slide 15: Q1 profit margin and Adjusted EBITDA
Shack-level operating profit margin Adjusted EBITDA margin 30.0% 25.7% 20.0% 18.5% 25.0% 23.0% 14.9% 15.0% 20.0% 15.0% 10.0% 10.0% 5.0% 5.0% 0.0% 0.0% Q1 '14 Q1 '15 Q1 '14 Q1 '15 Shack-level operating profit Adjusted EBITDA $10,000 $9,279 $8,000 $6,998 $8,000 $6,000 $6,000 $5,205 $4,000 $3,608 $4,00
Slide 16: Same-Shack sales growth
14.0% 12.0% 11.7% 10.0% 8.2% 8.0% 6.8% 7.2% 6.0% 5.9% 3.9% 4.5% 4.0% 2.0% 1.2% 0.8% 0.0% Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 5 7 8 8 9 10 12 13 13 # of Shacks 16
Slide 17: Average Shack volumes
(In thousands) $6,000 $7,000 $6,077 $5,017 $5,000 $6,000 $4,611 $5,000 $4,588 $4,000 $4,000 $3,000 $3,000 $2,000 $2,000 $1,000 $1,000 $0 $0 Total Company-Operated Licensed International Fiscal 2013 Fiscal 2014 (1) Fiscal 2013 Fiscal 2014 (1) 21 Shacks 30 Shacks (1) 15 Shacks 27 Shacks (1) Excludes 5
Slide 18: Same Shack sales, margins and growth
Same Shack Margins Sales •Long term margin pressure •We open big •Labor costs •24 month comp data •Target Model Shack Mix •Long-term - low single •New market launches digit growth •Commodity costs •Moderate price over •Public company overhead time Versatile Model Where to? •Strong 4-wall EBITDA at •
Slide 19: New Shack target economics
New Shack target Shack count 10 annually Average Shack volume ($mm) 1 $2.8 - $3.2 Shack-level operating profit margin 2 18% - 22% Average Shack investment costs ($mm) 3 $1.5 - $2.5 Cash-on-cash return 4 30% - 33% ¹ AUVs are calculated by dividing total sales from domestic company-operated Shacks by
Slide 20: 2015 Outlook
2015 Cutlook For the fiscal year ending December 30, 2015, the Company provides the following guidance: Total revenue between $161 million and $165 million Same-Shack sales growth in the low to mid single digits At least 10 new domestic company-operated Shacks to be opened throughout the year At lea
Slide 21: Las Vegas, NV
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Slide 22: Baltimore, MD
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Slide 23: Boston, MA
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Slide 24: Austin, TX
Austin, TX
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Slide 26: Chicago Athletic Association, IL
Chicago Athletic Association, IL
Slide 27: Stratford, London
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Slide 28: Old Orchard, IL
Old Orchard, IL
Slide 29: Fulton Center, NYC
Fulton Center, NYC
Slide 30: West Hollywood, CA
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Slide 31: Tokyo, Japan
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Slide 34: Thank you
By Poh Ad he c> SHAKE SS SHACK Investor Presentation June 2015 @shakeshack
Slide 35: Shack-level operating profit reconciliation
Thirteen Weeks Ended April 1, March 26, 2015 2014 Shack-level operating profit [A] $ 9,279 $ 5,205 Add: Licensing revenue 1,761 1,556 Less: General and administrative expenses 18,385 3,363 Depreciation expense 2,191 1,231 Pre-opening costs 1,413 933 Loss on disposal of property and equipment — 5 Ope
Slide 36: Adjusted EBITDA reconciliation
Fiscal Year Ended Thirteen Weeks Ended Dec 31, Dec 25, Dec 26, Dec 28, Dec 29, Apr 1, Mar 26, 2014 2013 2012 2011 2010 2015 2014 Net income $ 2,118 $ 5,423 $ 4,133 $ 1,328 $ 222 $ (11,260) $ 1,092 Depreciation expense 5,809 3,541 2,162 1,299 680 2,191 1,231 Interest expense, net 363 52 156 90 90 78