Shake Shack(US:SHAK)2025-07-31 20:11Sales Performance - Same-Shack sales for the thirteen weeks ended June 25, 2025 increased 1.8% to $343.2 million, driven by a 2.5% increase in price mix, partially offset by a 0.7% decline in guest traffic [110]. - Average weekly sales were $78,000 for the thirteen weeks ended June 25, 2025, compared to $77,000 for the same period last year, primarily driven by higher menu prices [111]. - System-wide sales for the thirteen weeks ended June 25, 2025 increased 13.7% to $549.9 million compared to the same period last year [112]. - Digital sales for the thirteen weeks ended June 25, 2025 increased 16.6% to $122.5 million, representing 35.7% of Shack sales during this period [113]. - Shack sales for the twenty-six weeks ended June 25, 2025 increased 11.4% to $653.1 million compared to $586.0 million for the same period last year [118]. - The company reported a 12.4% increase in Shack sales for the thirteen weeks ended June 25, 2025, primarily due to the opening of 44 new Company-operated Shacks [118]. - For the thirteen weeks ended June 25, 2025, total revenue was $356.5 million, an increase of 12.6% compared to $316.5 million for the same period in 2024 [168]. - Shack sales for the same period reached $343.2 million, up 12.3% from $305.5 million in the prior year [168]. Financial Performance - Total revenue for the thirteen weeks ended June 25, 2025 was $356.5 million, an increase from $316.5 million in the same period last year [116]. - Net income for the thirteen weeks ended June 25, 2025 was $18.5 million, compared to $10.4 million for the same period last year, reflecting a net income margin of 5.2% [116]. - Net income for the thirteen weeks ended June 25, 2025, was $18.5 million, compared to $10.4 million for the same period in 2024, representing an increase of 77.5% [168]. - Adjusted EBITDA for the thirteen weeks ended June 25, 2025, was $58.9 million, a 24.7% increase from $47.2 million in the same period of 2024 [168]. - The adjusted EBITDA margin improved to 16.5% for the thirteen weeks ended June 25, 2025, compared to 14.9% for the same period in 2024 [168]. - Restaurant-level profit for the thirteen weeks ended June 25, 2025, was $82.2 million, up from $67.1 million in the prior year, reflecting a profit margin of 23.9% [168]. Expenses - Total expenses for the thirteen weeks ended June 25, 2025 were $334.1 million, representing 93.7% of Shack sales [116]. - Food and paper costs for the thirteen weeks ended June 25, 2025 increased 13.6% to $96.6 million, and for the twenty-six weeks, it increased 10.5% to $182.7 million [124]. - Labor and related expenses for the thirteen weeks ended June 25, 2025 increased 1.7% to $88.1 million, and for the twenty-six weeks, it increased 3.9% to $174.7 million [127]. - Other operating expenses for the thirteen weeks ended June 25, 2025 increased 15.5% to $50.8 million, and for the twenty-six weeks, it increased 15.4% to $99.0 million [130]. - Occupancy and related expenses for the thirteen weeks ended June 25, 2025 increased 10.2% to $25.6 million, and for the twenty-six weeks, it increased 10.6% to $50.2 million [134]. - General and administrative expenses for the thirteen weeks ended June 25, 2025 increased 12.0% to $40.7 million, and for the twenty-six weeks, it increased 12.5% to $81.3 million [137][138]. - Depreciation and amortization expense for the thirteen weeks ended June 25, 2025 increased 4.1% to $26.5 million, and for the twenty-six weeks, it increased 4.2% to $53.1 million [141]. - Pre-opening costs for the thirteen weeks ended June 25, 2025 increased 23.4% to $4.955 million compared to the same period last year, primarily due to increased wages and legal costs [143]. - Pre-opening costs for the twenty-six weeks ended June 25, 2025 rose 20.8% to $8.173 million, driven by higher legal costs and team expenses related to Shack openings [144]. Income Tax and Other Financial Metrics - Income tax expense for the thirteen weeks ended June 25, 2025 rose to $6.193 million, a significant increase of 95.2% compared to the prior year [154]. - The effective income tax rate for the thirteen weeks ended June 25, 2025 was 25.1%, up from 23.4% in the prior year, primarily due to higher state income tax expenses [154]. - Net income attributable to non-controlling interests for the thirteen weeks ended June 25, 2025 increased to $1.335 million from $0.714 million in the same period last year [156]. - Other income, net for the thirteen weeks ended June 25, 2025 decreased to $2.850 million, down from $3.300 million in the same period last year [149]. - Interest expense for the thirteen weeks ended June 25, 2025 increased 4.0% to $0.548 million, attributed to increased finance lease charges from new Shack openings [151]. Cash Flow and Liquidity - Cash and cash equivalents as of June 25, 2025, totaled $336.8 million, providing a strong liquidity position [181]. - For the twenty-six weeks ended June 25, 2025, net cash provided by operating activities was $96.2 million, an increase of $12.0 million compared to $84.2 million for the same period in 2024 [188]. - Net cash used in investing activities was $67.4 million for the twenty-six weeks ended June 25, 2025, compared to net cash provided of $0.4 million in the prior year, primarily due to the absence of $66.4 million in proceeds from maturities of marketable securities [189]. - Net cash used in financing activities increased to $12.7 million for the twenty-six weeks ended June 25, 2025, from $7.5 million in the same period in 2024, mainly due to higher withholding taxes related to equity awards [190]. - As of June 25, 2025, cash and cash equivalents totaled $336.8 million, up from $301.8 million at the end of the previous year [187]. - The company expects existing cash and cash equivalents and cash from operations to be sufficient to meet obligations for at least the next 12 months [185]. Company Operations and Growth - The company opened 13 new Company-operated Shacks and nine new licensed Shacks during the thirteen weeks ended June 25, 2025 [114]. - The company opened 35 net new Company-operated Shacks between June 26, 2024, and June 25, 2025, contributing to changes in working capital [188]. - The Revolving Credit Facility allows borrowings up to $50.0 million, with the potential to increase by an additional $100.0 million, and no amounts were outstanding as of June 25, 2025 [192][194]. - The company is in compliance with all covenants under the Revolving Credit Facility as of June 25, 2025 [196]. - The majority of purchase obligations are due within the next 12 months, including commitments for inventory and service contracts [200].