Operations

Shake Shack reports Q1 sales leap

Provided

May 6, 2021

Although Shake Shack's Q1 revenue was up 8.5% over 2020, it fell nearly $7 million short of the $161.6 million expected by analysts. Same-store sales were up 5.7%, however, surpassing predictions of 1.74%

"In the first quarter and so far through fiscal April, the positive momentum of our financial recovery continued," CEO Randy Garutti said in a company press release. "We know that the return of business traffic, events and tourism to cities like NYC, Chicago and LA will be key to our full recovery."

During the quarter, which ended March 31, Shake Shack opened 10 domestic company-operated units and added five so far in Q2 with a total of 35 to 40 by year's end.

"Average weekly sales for the 2021 class in the first quarter have been strong at $79,000 per week, more than 20% higher than the rest of the system average, showing how significant the sales opportunities are for new Shack openings now and in the future," Garutti said

Digital avenues, including the app, website and third-party delivery companies, continued to dominate the way customers ordered, representing 60% of sales.

"Shack Track digital convenience leads, with about a third of the class featuring walk-up windows, about 10% with a drive-up window and many other Shacks featuring curbside and/or an enhanced interior pickup experience," Garutti said.

Even as customers return to dining rooms, Garutti said digital channels maintained 90% of sales retention in fiscal April versus fiscal January and that app and web sales were up 203% over last year.

Q1 Highlights

Total revenue increased 8.5% to $155.3 million.
Shack sales increased 9.1% to $150.7.
Same-Shack sales increased 5.7%.
Licensed revenue decreased 9.9% to $4.6 million.
Shack system-wide sales in the first quarter 2021 increased 3% to $228.3 million.
Net income was $0.6 million and adjusted EBITDA was $7.1 million in the first quarter 2021, compared to a net loss of $1.1 million and adjusted EBITDA of $14.3 million in the same period last year

The company expects the following for Q2: