Shake Shack(SHAK) - 2025 Q2 - Quarterly Results

Financial Performance Summary Second Quarter 2025 Financial Highlights Shake Shack reported strong Q2 2025 growth, with total revenue up 12.6% to $356.5 million and net income rising to $18.5 million Second Quarter 2025 Financial Highlights (in millions USD, except EPS and %) | Financial Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $356.5 | $316.5 (implied) | +12.6% | | System-wide Sales | $549.9 | $483.6 (implied) | +13.7% | | Same-Shack Sales | - | - | +1.8% | | Operating Income | $22.4 | $10.8 | +107.4% | | Restaurant-level Profit | $82.2 | $67.1 (from recon) | +22.5% | | Net Income | $18.5 | $10.4 | +77.9% | | Adjusted EBITDA | $58.9 | $47.2 | +24.8% | | Diluted EPS | $0.41 | $0.23 | +78.3% | | Adj. Pro Forma Diluted EPS | $0.44 | $0.27 | +63.0% | - The company expanded its presence by opening 13 new Company-operated Shacks, including two with drive-thrus, and 9 new licensed Shacks during the quarter[5] Consolidated Financial Statements Condensed Consolidated Balance Sheets Total assets grew to $1.78 billion as of June 25, 2025, primarily due to property and equipment, with total liabilities at $1.26 billion and total equity at $519.1 million Condensed Consolidated Balance Sheets (in thousands USD) | Balance Sheet Item | June 25, 2025 | December 25, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $336,804 | $320,714 | | Total current assets | $390,843 | $368,216 | | Total Assets | $1,775,033 | $1,696,971 | | Total current liabilities | $204,050 | $187,313 | | Total Liabilities | $1,255,969 | $1,203,345 | | Total Equity | $519,064 | $493,626 | Condensed Consolidated Statements of Income Total revenue for Q2 2025 increased to $356.5 million, with income from operations more than doubling to $22.4 million and net income attributable to Shake Shack Inc. reaching $17.1 million Condensed Consolidated Statements of Income (Q2, in thousands USD) | Income Statement | 2025 | 2024 | | :--- | :--- | :--- | | Shack Sales | $343,224 | $305,480 | | Licensing Revenue | $13,242 | $11,016 | | Total Revenue | $356,466 | $316,496 | | Income from Operations | $22,374 | $10,782 | | Net Income | $18,483 | $10,382 | | Net Income Attributable to Shake Shack Inc. | $17,148 | $9,668 | | Diluted EPS | $0.41 | $0.23 | Condensed Consolidated Statements of Cash Flows Net cash provided by operating activities for the first 26 weeks of 2025 was $96.2 million, with $67.4 million used in investing and $12.7 million in financing, leading to a $16.1 million cash increase Condensed Consolidated Statements of Cash Flows (26 Weeks Ended, in thousands USD) | Cash Flow | June 25, 2025 | June 26, 2024 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $96,220 | $84,210 | | Net Cash (Used in) Provided by Investing Activities | ($67,438) | $428 | | Net Cash Used in Financing Activities | ($12,689) | ($7,452) | | Increase in Cash and Cash Equivalents | $16,090 | $77,185 | Non-GAAP Financial Measures and Reconciliations Restaurant-Level Profit Restaurant-level profit increased to $82.2 million in Q2 2025, with the margin improving to 23.9% of Shack sales, indicating enhanced individual restaurant profitability - Restaurant-level profit is a non-GAAP measure defined as Shack sales less Shack-level operating expenses (Food and paper, Labor, Other operating, and Occupancy expenses) used to evaluate the performance and profitability of its Shacks[22][23] Restaurant-Level Profit (Q2, in thousands USD) | Restaurant-Level Profit | 2025 | 2024 | | :--- | :--- | :--- | | Income from operations | $22,374 | $10,782 | | Restaurant-level profit | $82,184 | $67,079 | | Shack sales | $343,224 | $305,480 | | Restaurant-level profit margin | 23.9% | 22.0% | EBITDA and Adjusted EBITDA Adjusted EBITDA for Q2 2025 rose to $58.9 million, a 24.8% increase, with the margin expanding to 16.5%, reflecting improved operating leverage and profitability - Adjusted EBITDA is a non-GAAP measure that excludes items like equity-based compensation, impairments, and other non-recurring costs from EBITDA to facilitate comparisons of historical performance[29][30] Adjusted EBITDA Reconciliation (Q2, in thousands USD) | Adjusted EBITDA Reconciliation | 2025 | 2024 | | :--- | :--- | :--- | | Net income | $18,483 | $10,382 | | EBITDA | $51,721 | $39,446 | | Adjusted EBITDA | $58,900 | $47,209 | | Adjusted EBITDA margin | 16.5% | 14.9% | Adjusted Pro Forma Net Income Adjusted pro forma net income for Q2 2025 was $19.5 million, or $0.44 per diluted share, highlighting strong underlying earnings growth after adjustments - Adjusted pro forma net income is a non-GAAP measure assuming full exchange of LLC interests for Class A common stock, adjusted for non-recurring items to evaluate performance over time and against competitors[37][38] Adjusted Pro Forma Net Income (Q2, in thousands USD) | Adjusted Pro Forma Net Income | 2025 | 2024 | | :--- | :--- | :--- | | Net income attributable to Shake Shack Inc. | $17,148 | $9,668 | | Adjusted pro forma net income | $19,476 | $12,146 | | Adjusted pro forma EPS — diluted | $0.44 | $0.27 | Company Overview and Definitions About Shake Shack Shake Shack is a global brand known for its high-quality American classic menu, expanding to over 600 system-wide locations since its 2004 inception - Shake Shack's menu features made-to-order Angus beef burgers, crispy chicken, hand-spun milkshakes, and house-made lemonades[6] - The company has grown to over 600 locations system-wide, with a presence in 34 U.S. States and international markets such as London, Hong Kong, Shanghai, and Mexico City[6] Key Definitions This section defines key operating and financial metrics, including Shack sales, System-wide sales, and Same-Shack sales, crucial for understanding company performance - Shack sales: Aggregate sales of food, beverages, and merchandise at Company-operated Shacks, excluding licensed locations[8] - System-wide sales: An operating measure consisting of sales from both Company-operated and licensed Shacks[9] - Same-Shack sales: Represents sales for Company-operated Shacks that have been open for 24 full fiscal months or longer[10]