
Core Insights - Shake Shack Inc. (SHAK) reported first-quarter fiscal 2025 results with earnings and revenues missing the Zacks Consensus Estimate, although both metrics increased year over year [1][2] - The stock experienced a marginal gain of 1.1% following the results [1] Earnings & Revenue Details - Adjusted earnings per share (EPS) were 14 cents, missing the estimate of 16 cents by 12.5%, but increased 7.7% year over year [2] - Quarterly revenues reached $320.9 million, falling short of the consensus mark of $328 million by 2.1%, yet showing a year-over-year increase of 10.5% [2] Sales Performance - Same-Shack sales increased by 0.2% year over year, a decline from the previous quarter's growth of 4.3% [3] - Shack sales rose 10.4% year over year to $309.8 million, below the expected $317.9 million [3] - Licensing revenues were $11.1 million, up 11.1% year over year, exceeding the forecast of $10.7 million [3] - Shack system-wide sales increased 10.4% year over year to $489.4 million [3] Operating Highlights - Operating income for the quarter was $2.8 million, compared to $0.03 million in the prior-year quarter [4] - Restaurant-level profit margin improved to 20.7%, up 120 basis points year over year [4] - Food and paper costs as a percentage of revenues decreased by 80 basis points to 27.8% [4] - Labor and related costs as a percentage of revenues reduced by 110 basis points to 28% [4] Expense and EBITDA Analysis - Total expenses for the quarter were $318.1 million, compared to $290.5 million in the prior-year quarter, slightly above the estimate of $326 million [5] - Adjusted EBITDA was $40.7 million, up from $35.9 million in the year-ago quarter, with an adjusted EBITDA margin expanding by 30 basis points to 12.7% [5] Balance Sheet Overview - As of March 26, 2025, cash and cash equivalents totaled $312.9 million, down from $320.7 million as of December 25, 2024 [6] - Long-term debt remained relatively stable at $246.5 million compared to $246.7 million as of December 25, 2024 [6] Future Outlook - For the second quarter of fiscal 2025, total revenues are expected to be between $346 million and $353 million, with licensing revenues projected between $11.9 million and $12.3 million [7] - For fiscal 2025, revenues are anticipated to be in the range of $1.4 billion to $1.5 billion, with a restaurant-level profit margin projected at about 22.5% [8] - The company expects to open approximately 45-50 company-operated locations and 35-40 licensed Shack openings in fiscal 2025 [8]