News

Shake Shack raises 2019 expectations after posting solid Q1

May 2, 2019

Shake Shack Inc. reported Thursday that total year-over-year revenues increased 33.8% to $132.6 million during the first quarter ending March 27, prompting the company to increase its revenue and same-store sales expectations for the year.

"Our performance was supported by the strength from new openings, the holiday shift and warm weather conditions across a number of key markets early in the quarter and the continued growth of our digital channels, where we see significant ongoing opportunities," CEO Randy Garutti said during an afternoon earnings call.

Shake Shack raised its year-end revenue expectations from $570–$576 million to $576–$582 million, and it now expects same-store sales to increase from 1%–2%, as opposed to a previous forecast of flat sales.

Highlights included:

• Same-store sales increased 3.6%.
• Shack system-wide sales increased 33.5% to $195.2 million.
• Operating income was $5.2 million, or 3.9% of total revenue and included the impact from costs associated with Project Concrete and other one-time items that totaled $0.5 million and resulted in an operating income decrease of 20.8% in the quarter.
• Net income was $3.6 million and adjusted EBITDA, a non-GAAP measure, increased 10.4% to $17.8 million.
• The company saw 12 Shack openings system-wide, including five domestic company-operated Shacks and seven licensed units.

 "We also plan to open 16 to 18 net new licensed Shacks, with our international growth focused on Asia and our new markets of mainland China, Singapore, the Philippines and Mexico," Garuti said.