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A 3-way comparison: Chipotle, Panera, Shake Shack Q1 SSSG

June 16, 2017

For restaurateurs, the three letters of SSSG (i.e., same-store sales growth) might as well be dollar signs. The statistic is key because it shows revenue growth that didn't require investment

That's why investment research site, Market Realist, focused on SSSG as part of its study in Q1 of Panera, Shake Shack and Chipotle.  

Chipotle led the pack with Q1 SSSG of 17.8 percent, outpacing its fast casual rivals. The report notes that an increase in traffic and ticket size growth were mainly responsible, but Market Realist also highlighted these Chipotle initiatives for helping drive sales:

• using tech such as Smarter Pickup Times, to make customers happier;
• new menu innovations;
• eliminating artificial ingredients; and
• marketing and promoting aggressively. 

At Panera and Shake Shack, Q1 SSSG gives a more representative picture of fast casual today. Panera Bread's Q1 SSSG of 2.6 percent included company-owned SSSG of 5.3 percent vs. 0.30 percent in franchised units. Price increases accounted for 2 percent of growth, while traffic and product mix contributed 1.7 and 1.6 percent, respectively.

At Shake Shack, a drop in traffic is credited with lowering SSSG 2.5 percent in Q1. Again, Market Realist saw tech and increased prices as helpful, but perhaps not enough to undo the damage the company said it suffered in the Northeast during the first quarter due to winter storms.