Operations

Shake Shack to hit 1,500 units

Photo: Shake Shack

January 13, 2025

Shake Shack Inc. CEO Rob Lynch said the chain has the potential to hit 1,500 company-operated units, versus the prior target of 450 provided in conjunction with the company's February 2015 initial public offering.

"We are proud to announce that we ended FY2024 with 329 company-operated Shacks with a marked improvement in our profitability and returns, Lynch when discussing the company's unaudited results for the fiscal fourth quarter and fiscal year ended Dec. 25, 2024. "However, we believe that we are just getting started, and see an ample runway for growth ahead. We are committed to bringing the world's best fine casual experience to as many guests, team members, and communities as possible."

Lynch also outlined the chain's six strategic priorities for 2025. They are:

1. Build a culture of leaders.
2. Optimize restaurant operations.
3. Drive comp sales by increasing guest frequency.
4. Build and operate our Shacks with best-in-class returns.
5. Accelerate our licensed business.
6. Invest in long-term strategic capabilities.

CFO Katie Fogertey said the unaudited results revealed that same-store sales increased 4.3% during Q4.

"Total revenue by 14.8%, expanded our restaurant margins by nearly 300 basis points year-over-year to 22.7% — the highest fourth quarter level since 2017, and grew Adjusted EBITDA by 48% year-over-year, more than three times our total revenue growth rate and the highest Adjusted EBITDA level on record," she said in the release.

The chain opened 43 company-operated Shacks, and guidance for 2025 and for the next three years represents some of the highest growth in the restaurant industry.

"In FY2025, we expect to grow Total revenue by 16%-18% year-over-year, continue to expand our restaurant margins to approximately 22% and grow Adjusted EBITDA by 14%-20% versus FY2024," Fogertey said.