Shake Shack(SHAK)

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Shake Shack(SHAK) - 2024 Q2 - Earnings Call Presentation
2024-08-01 14:45
SHAKE === SHACK® Second Quarter 2024 Shareholder Letter GET LOST IN OUR BBQ SAUCE Bite into something tangy-sweet with the Carolina BBQ Burger or keep it classic with our Smoky Classic BBQ Burger. Q2 2024 HIGHLIGHTS BUSINESS OVERVIEW SECOND QUARTER 2024 HIGHLIGHTS: • Total revenue grew 16.4% year-over-year to $316.5m. • Shack sales grew 16.7% year-over-year to $305.5m. • Licensing revenue grew 10.2% year-over-year to $11.0m. • System-wide sales grew 13.5% year-over-year to $483.7m. • Average weekly sales (A ...
Shake Shack (SHAK) Meets Q2 Earnings Estimates
ZACKS· 2024-08-01 13:11
Shake Shack (SHAK) came out with quarterly earnings of $0.27 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.18 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this burger chain would post earnings of $0.10 per share when it actually produced earnings of $0.13, delivering a surprise of 30%.Over the last four quarters, the company has surpassed consensus EPS estimates three times.Shake Shack, which belongs to t ...
Shake Shack(SHAK) - 2024 Q2 - Quarterly Results
2024-08-01 11:01
[Q2 2024 Financial Highlights](index=1&type=section&id=Shake%20Shack%20Announces%20Second%20Quarter%202024%20Financial%20Results) Shake Shack reported strong Q2 2024 financial results with significant revenue and income growth, alongside continued restaurant expansion Q2 2024 Key Financial Metrics vs. Q2 2023 (in millions) | Metric | Q2 2024 | Q2 2023 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $316.5M | $271.8M | +16.4% | | Same-Shack Sales | +4.0% | N/A | N/A | | Operating Income | $10.8M | $4.7M | +129.8% | | Net Income | $10.4M | $7.2M | +44.4% | | Adjusted EBITDA | $47.2M | $37.1M | +27.4% | | Diluted EPS | $0.23 | N/A | N/A | | Adjusted Pro Forma Diluted EPS | $0.27 | N/A | N/A | - The company expanded its footprint by opening **twelve new Company-operated Shacks**, including **three drive-thrus**, and **eleven new licensed Shacks** during the second quarter of 2024[1](index=1&type=chunk) [Financial Statements](index=3&type=section&id=Financial%20Statements) This section details Shake Shack's financial position, performance, and cash flows through consolidated statements [Condensed Consolidated Balance Sheets](index=3&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of June 26, 2024, Shake Shack's total assets increased to $1.66 billion from $1.61 billion at the end of 2023, primarily driven by a significant rise in cash and cash equivalents to $301.8 million. Total liabilities also grew to $1.18 billion from $1.14 billion, while total equity increased to $486.4 million from $469.4 million over the same period Balance Sheet Summary (in thousands) | Account | June 26, 2024 | December 27, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $301,838 | $224,653 | | Total Assets | $1,661,758 | $1,605,857 | | Total Liabilities | $1,175,393 | $1,136,487 | | Total Equity | $486,365 | $469,370 | [Condensed Consolidated Statements of Income](index=4&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20INCOME) For the thirteen weeks ended June 26, 2024, Shake Shack reported total revenue of $316.5 million, a 16.4% increase year-over-year, driven by growth in Shack sales. Operating income more than doubled to $10.8 million from $4.7 million, and net income rose to $10.4 million from $7.2 million in the prior-year quarter, reflecting improved profitability Income Statement Highlights - Thirteen Weeks Ended (in thousands) | Metric | June 26, 2024 | June 28, 2023 | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $316,496 | $271,805 | +16.4% | | Income from Operations | $10,782 | $4,748 | +127.1% | | Net Income | $10,382 | $7,223 | +43.7% | | Net Income Attributable to Shake Shack Inc. | $9,668 | $6,948 | +39.2% | Income Statement Highlights - Twenty-Six Weeks Ended (in thousands) | Metric | June 26, 2024 | June 28, 2023 | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $607,000 | $525,083 | +15.6% | | Income from Operations | $10,816 | $1,559 | +593.8% | | Net Income | $12,596 | $5,601 | +124.9% | [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) For the first twenty-six weeks of 2024, net cash provided by operating activities was $84.2 million, a significant increase from $62.2 million in the same period of 2023. Investing activities provided a small cash inflow of $0.4 million, a major shift from an $85.4 million use of cash in the prior year, largely due to maturities of marketable securities. The company's cash and cash equivalents increased by $77.2 million, ending the period at $301.8 million Cash Flow Summary - Twenty-Six Weeks Ended (in thousands) | Activity | June 26, 2024 | June 28, 2023 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $84,210 | $62,191 | | Net Cash Provided by (Used in) Investing Activities | $428 | ($85,415) | | Net Cash Used in Financing Activities | ($7,452) | ($3,596) | | **Increase (Decrease) in Cash** | **$77,185** | **($26,824)** | | **Cash and Cash Equivalents at End of Period** | **$301,838** | **$203,697** | [Non-GAAP Financial Measures](index=6&type=section&id=NON-GAAP%20FINANCIAL%20MEASURES) This section reconciles key non-GAAP financial measures to comparable GAAP measures for enhanced comparability [Reconciliation of Restaurant-Level Profit](index=6&type=section&id=Restaurant-Level%20Profit) The company uses Restaurant-level profit, a non-GAAP measure, to evaluate the profitability of its individual restaurants. For Q2 2024, Restaurant-level profit was $67.1 million with a margin of 22.0% of Shack sales, an improvement from $54.9 million and a 21.0% margin in Q2 2023. This measure is reconciled from the GAAP measure, Income from Operations, by excluding corporate-level expenses - **Restaurant-level profit** is a key internal metric used for budgeting, forecasting, and assessing performance, defined as Shack sales less direct Shack-level operating expenses (**Food and paper**, **Labor**, **Other operating**, and **Occupancy**)[18](index=18&type=chunk)[19](index=19&type=chunk) Restaurant-Level Profit Reconciliation - Thirteen Weeks Ended (in thousands) | Metric | June 26, 2024 | June 28, 2023 | | :--- | :--- | :--- | | Income from operations (GAAP) | $10,782 | $4,748 | | **Restaurant-level profit (Non-GAAP)** | **$67,079** | **$54,942** | | Shack sales | $305,480 | $261,810 | | **Restaurant-level profit margin** | **22.0%** | **21.0%** | [Reconciliation of EBITDA and Adjusted EBITDA](index=8&type=section&id=EBITDA%20and%20Adjusted%20EBITDA) Adjusted EBITDA, a key non-GAAP metric used by management, increased 27.4% to $47.2 million in Q2 2024 from $37.1 million in Q2 2023. The Adjusted EBITDA margin expanded to 14.9% from 13.6% year-over-year. These figures are reconciled from the GAAP measure, Net Income, by adding back interest, taxes, D&A, and other specific adjustments like equity-based compensation - **Adjusted EBITDA** is a key metric used internally for budgets, forecasts, and incentive compensation, as it excludes items not indicative of ongoing core operating performance[23](index=23&type=chunk) Adjusted EBITDA Reconciliation - Thirteen Weeks Ended (in thousands) | Metric | June 26, 2024 | June 28, 2023 | | :--- | :--- | :--- | | Net income (GAAP) | $10,382 | $7,223 | | EBITDA (Non-GAAP) | $39,446 | $30,100 | | **Adjusted EBITDA (Non-GAAP)** | **$47,209** | **$37,050** | | **Adjusted EBITDA margin** | **14.9%** | **13.6%** | [Reconciliation of Adjusted Pro Forma Net Income and EPS](index=10&type=section&id=Adjusted%20Pro%20Forma%20Net%20Income%20and%20Adjusted%20Pro%20Forma%20Earnings%20Per%20Fully%20Exchanged%20and%20Diluted%20Share) The company reported adjusted pro forma net income of $12.1 million for Q2 2024, up from $7.9 million in the prior-year quarter. This resulted in an adjusted pro forma diluted earnings per share of $0.27, a significant increase from $0.18 in Q2 2023. This non-GAAP measure adjusts Net income attributable to Shake Shack Inc. for non-recurring items and assumes the full exchange of LLC interests to improve comparability - This measure is used to evaluate performance over time and against competitors by creating a comparable corporate and tax structure, assuming the **full exchange of all outstanding LLC Interests**[28](index=28&type=chunk) Adjusted Pro Forma Net Income & EPS - Thirteen Weeks Ended (in millions) | Metric | June 26, 2024 | June 28, 2023 | | :--- | :--- | :--- | | Net income attributable to Shake Shack Inc. (GAAP) | $9.7M | $6.9M | | **Adjusted pro forma net income (Non-GAAP)** | **$12.1M** | **$7.9M** | | Earnings per share of Class A common stock—diluted (GAAP) | $0.23 | $0.16 | | **Adjusted pro forma earnings per fully exchanged share—diluted (Non-GAAP)** | **$0.27** | **$0.18** |
Shake Shack (SHAK) Gears Up for Q2 Earnings: What's in Store?
ZACKS· 2024-07-30 14:41
Shake Shack Inc. (SHAK) is scheduled to report second-quarter 2024 financial numbers on Aug 1, before the opening bell. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 30%.What to Expect?The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at 27 cents, up 50% year over year. In the past 60 days, earnings estimates for the to-be-reported quarter have remained stable. The Zacks Consensus Estimate for revenues is pegged at $314.2 million, sugges ...
Shake Shack (SHAK) Earnings Expected to Grow: Should You Buy?
ZACKS· 2024-07-25 15:07
The market expects Shake Shack (SHAK) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on August 1, 2024, might help the stock move higher if these key numbers are be ...
Shake Shack: Wall Street Seems Too Bullish On Q2
Seeking Alpha· 2024-07-15 13:09
Juanmonino/iStock Unreleased via Getty Images Shake Shack Inc. (NYSE:SHAK) is expected to report the company's Q2 results near the 1st of August. While the stock has recently fallen amid a weak short-term industry outlook, Shake Shack still looks to carry a weak risk-to-reward going into the earnings. I previously wrote an article on the company, titled "Shake Shack: Priced With Too Much Growth Anticipation". In the article, published on the 6th of May, I went over Shake Shack's long-term financial profile, ...
What Makes Shake Shack (SHAK) a New Buy Stock
ZACKS· 2024-07-08 17:01
Shake Shack (SHAK) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.Since a c ...
Shake Shack (SHAK) Stock Rises 20% YTD: More Room to Run?
ZACKS· 2024-06-24 15:37
Shares of Shake Shack Inc. (SHAK) have increased 20.1% year to date against the industry’s decline of 4.5%. The company is benefiting from expansion, marketing innovation and operational efficiencies. Also, focus on digital initiatives bodes well. However, inflationary pressures are a concern.Let’s discuss why investors should retain the stock for the time being.Factors Driving GrowthShake Shak focuses on store openings to effectively strategize its expansion plans. The company is pleased with the sales lev ...
Shake Shack (SHAK) Gains From Same-Shack Sales Amid High Costs
zacks.com· 2024-05-28 14:10
Shake Shack Inc. (SHAK) has experienced remarkable success, fueled by strong same-shack sales, strategic expansion and innovative menu offerings. These initiatives have propelled the company's shares upward by an impressive 49.1% over the past year, in stark contrast to the industry’s 4.8% decline.However, in the past month, the stock has declined 7.8%. The decline was primarily due to inflationary pressure. Its premium ingredients have witnessed a significant increase in price in a very short period. Total ...
Shake Shack(SHAK) - 2024 Q1 - Quarterly Report
2024-05-03 12:02
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 March 29, 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 othe ...