Shacke Shack
SHAKE SHACK ANNOUNCES FIRST QUARTER 2018 FINANCIAL RESULTS
05/03/2018
- Total Revenue Grew 29.1% to $99.1 Million -
- System-wide Year-Over-Year Unit Growth of 32% -
- Same-Shack Sales Increased 1.7% -
NEW YORK--(BUSINESS WIRE)--
Shake Shack Inc. (“Shake Shack” or the “Company”) (NYSE: SHAK) today reported its financial results for the first quarter ended March 28, 2018, a period that included 13 weeks.
Financial Highlights for the First Quarter 2018:
Total revenue increased 29.1% to $99.1 million.
Shack sales increased 29.6% to $96.1 million.
Same-Shack sales increased 1.7%.
Operating income increased 15.7% to $6.5 million, or 6.6% of total revenue.
Shack-level operating profit*, a non-GAAP measure, increased 28.5% to $24.0 million, or 25.0% of Shack sales.
Net income increased 28.9% to $5.0 million and net income attributable to Shake Shack Inc. was $3.5 million, or $0.13 per diluted share.
Adjusted EBITDA*, a non-GAAP measure, increased 32.8% to $16.2 million.
Adjusted pro forma net income*, a non-GAAP measure, increased 54.0% to $5.7 million, or $0.15 per fully exchanged and diluted share.
Nine system-wide Shack openings, comprising five domestic company-operated Shacks and four licensed Shacks.
* Shack-level operating profit, adjusted EBITDA and adjusted pro forma net income are non-GAAP measures. Reconciliations of Shack-level operating profit to operating income, adjusted EBITDA to net income, and adjusted pro forma net income to net income attributable to Shake Shack Inc., the most directly comparable financial measures presented in accordance with GAAP, are set forth in the schedules accompanying this release. See “Non-GAAP Financial Measures.”
Randy Garutti, Chief Executive Officer of Shake Shack, stated, “2018 is off to a strong start as we built upon our fourth quarter momentum, reporting another quarter of robust top and bottom-line growth. We delivered year over year revenue growth of approximately 29%, including a 1.7% increase in same-Shack sales and grew adjusted EBITDA by over 30%. These results were supported by the continued evolution of our digital initiatives and the strength of new and existing Shacks as we executed on our development plans."
Garutti concluded, "Our team is executing the plan to open 32 to 35 new domestic company-operated Shacks in 2018, our biggest year of openings to date. Our domestic pipeline is stronger than ever as we build towards our goal of 200 domestic company-operated Shacks by the end of 2020 and our long-term target of 450. We expect 16 to 18 net new licensed Shacks for the year, with a focus on Asia including our first Shack in Hong Kong which opened on May 1st . Additionally, we are committed to digital innovation to better connect with our guests, delivering ongoing menu innovation, and investing in our people and infrastructure to execute on the significant long-term opportunity ahead."
Development Highlights
During the quarter, the Company opened five domestic company-operated Shacks, including its first Shack in the RINo District in downtownDenver, as well as additional Shacks in the existing markets of Houston, LA, South Florida and New Jersey. The Company also opened four international licensed Shacks; one in each of Saudi Arabia, South Korea and two in Japan.
Location
Type
Opening DateRiyadh, KSA — Riyadh Gallery
International Licensed
January 4Incheon, South Korea — Incheon Airport
International Licensed
January 18Tokyo, Japan — Tokyo Dome
International Licensed
February 1Tokyo, Japan — Futako Tamagawa
International Licensed
February 28Houston, TX — Rice Village
Domestic Company-Operated
February 28Los Angeles, CA — Downtown LA
Domestic Company-Operated
March 9Rino Denver, CO — RiNo
Domestic Company-Operated
March 21Marlton, NJ — Marlton Common
Domestic Company-Operated
March 22Aventura, FL — Aventura Mall
Domestic Company-Operated
March 23
https://investor.shakeshack.com/inv...t-Quarter-2018-Financial-Results/default.aspx
