Scott OlsonBack in August, I placed a “Hold” rating on Shake Shack (NYSE:SHAK), saying while the company’s long-term outlook looked solid, there were some near-term headwinds it had to deal with first. The stock is up about 10% since then, pretty much in line with the S&P over the same period. Company Profile As a reminder, SHAK owns and licenses its upscale quick service restaurants in the U.S. and international. The company is best known for its high-end burgers, but it also sells other items such as ...

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Shake Shack Inc. (SHAK) is benefiting from various digital initiatives, strong same-shack sales and unit expansion efforts. Consequently, the company’s shares have risen 24.4% in the past three months compared with the industry’s growth of 9.6%. Despite these favorable factors, it is worth noting that inflationary pressure continues to pose a challenge.The currently Zacks Rank #3 (Hold) company’s 2024 earnings and sales are likely to witness year-over-year growth of 39% and 15.2%, respectively.Let’s delve d ...

Shake Shack Inc. (NYSE:SHAK) Q3 2023 Earnings Conference Call November 2, 2023 8:00 AM ET Company Participants Michael Oriolo – Senior Director-FP&A and Investor Relations Randy Garutti – Chief Executive Officer Katie Fogertey – Chief Financial Officer Conference Call Participants Brian Vaccaro – Raymond James Katherine Griffin – Bank of America Jim Sanderson – Northcoast Research Jeff Farmer – Gordon Haskett Brian Harper – Morgan Stanley Sharon Zackfia – William Blair Jake Bartlett – Truist Securities Mich ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES ☑ EXCHANGE ACT OF 1934 For the quarterly period ended September 27, 2023 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES ☐ EXCHANGE ACT OF 1934 For the transition period from _______ to ______ Commission file number: 001-36823 SHAKE SHACK INC. (Exact name of registrant as specified in its charter) Delaware 47-1941186 (State or ...

Third Quarter 2023 Shareholder Letter 1 Garden City, RI Q3 2023 HIGHLIGHTS BUSINESS OVERVIEW THIRD QUARTER 2023 HIGHLIGHTS: • Total revenue grew 21.2% year-over-year to $276.2m. • Shack sales grew 20.7% year-over-year to $265.0m. • Licensing revenue grew 35.1% year-over-year to $11.2m. • System-wide sales grew 24.3% year-over-year to $438.9m. • Average weekly sales (AWS) grew 1.4% year-over-year to $74k. • Same-Shack sales (SSS) grew 2.3% year-over-year. • Operating income of $5.7m versus operating loss of ...

Financial Data and Key Metrics - Total revenue grew by 18% YoY to $272 million, with same-Shack sales up 3% and average weekly sales of $77,000 [8] - System-wide sales increased by 21% YoY to $426 million, driven by growth in the licensed business [8] - Shack-level operating profit reached 21%, the highest since 2019, marking a 240-basis point gain over last year [10] - Adjusted EBITDA grew by 61.9% YoY to $37.1 million, representing 13.6% of total revenue [25] - Net income attributable to Shake Shack Inc was $6.9 million, or $0.16 per diluted share [42] Business Line Performance - Company-operated business opened 10 new Shacks, with 23 under construction, targeting ~40 new Shacks in 2023 [8] - Licensed business opened 13 Shacks in Q2, targeting 35 new Shacks in 2023, representing 17% system-wide unit growth YoY [9] - Kiosk sales doubled YoY, with high single-digit lift in average order values, contributing to profitability [15][28] - Delivery traffic declined, while in-Shack traffic grew by 4.7%, with Kiosk adoption driving higher profitability [31] Market Performance - Domestic licensed business grew sales by over 50% YoY, led by airports and roadway locations [34] - Strong performance in China, with the first Shack opened in Thailand and a Resort Shack in the Bahamas [20][34] - Urban markets like Washington D C, Boston, and New York City performed well, with July same-Shack sales up 4.5% [34] Strategy and Industry Competition - Focus on recruiting, retaining, and rewarding a winning team, with improved retention and turnover rates [12] - Culinary strategy includes core menu improvements and limited-time offers (LTOs) to drive mix frequency and margins [14] - Drive-through expansion is a key focus, with 18 drive-throughs operating and plans to open ~15 in 2023 [17][18] - Digital investments, particularly in Kiosks, are a priority for enhancing guest experience and profitability [16][28] Management Commentary on Operating Environment and Future Outlook - Management highlighted the resilience of the consumer, particularly in higher-income segments, but acknowledged pressures from lower-income consumers trading down [74] - Beef inflation remains a key uncertainty, with high single-digit inflation in Q2 and potential for low double-digit inflation in Q3 [46][70] - The company is optimistic about reducing build costs by ~10% in 2024, driven by operational efficiencies and standardized formats [19][56] Other Important Information - The company ended Q2 with $295.2 million in cash and cash equivalents, up from $293.4 million in the prior quarter [43] - CapEx spending increased by 48% YoY to $40.4 million, driven by new Shack openings and Kiosk retrofits [43] - Full-year 2023 guidance includes total revenue of $1.07 billion to $1.08 billion, with same-Shack sales growth of low-to-mid single digits [47] Q&A Session Summary Question: Build cost reduction targets for 2024 - The company targets a 10% reduction in build costs for 2024, with improvements in both drive-through and traditional formats [54][56] Question: Labor efficiency improvements - Labor hours per Shack decreased by 50 hours per week YoY, driven by Kiosk adoption, dynamic labor scheduling, and improved training [77][80] Question: Consumer behavior and demand trends - The company noted resilience in higher-income consumers but acknowledged pressures from lower-income consumers trading down [74][75] Question: Kiosk impact on sales and labor - Kiosks drove a high single-digit lift in average order values, with early signs of labor savings and improved profitability [66][67] Question: Beef inflation and mitigation strategies - Beef inflation was high single digits in Q2, with potential for low double-digit inflation in Q3, but no hedging strategy is in place [70][71] Question: Guest experience and operational improvements - The company emphasized improving guest experience through Kiosks, standardized operations, and enhanced service, while reducing costs [82][85] Question: Marketing and brand awareness - The company plans to increase marketing spend to drive brand awareness, particularly in newer markets with lower brand recognition [94][108]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES ☑ EXCHANGE ACT OF 1934 For the quarterly period ended June 28, 2023 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES ☐ EXCHANGE ACT OF 1934 For the transition period from _______ to ______ Commission file number: 001-36823 SHAKE SHACK INC. (Exact name of registrant as specified in its charter) Delaware 47-1941186 (State or other ...

Shake Shack Inc. (NYSE:SHAK) Q1 2023 Earnings Conference Call May 4, 2023 8:00 AM ET Company Participants Annalee Leggett - Director of Investor Relations & FP&A Randy Garutti - Chief Executive Officer Katie Fogertey - Chief Financial Officer Conference Call Participants Jeffrey Bernstein - Barclays Capital Michael Tamas - Oppenheimer & Co. Jake Bartlett - Truist Securities Drew North - Robert W. Baird & Co. Jim Sanderson - Northcoast Research Maggie O'Hearn - Raymond James John Ivankoe - JPMorgan Chase & C ...