- Total revenue of $276.2 million, up 21.2% versus
2022, including $265.0 million of Shack sales and $11.2
million of Licensing revenue.
- System-wide sales of $438.9 million, up 24.3%
versus 2022.
- Same-Shack sales up 2.3% versus 2022.
- Operating income of $5.7 million, versus an operating
loss of $4.8 million in 2022.
- Shack-level operating profit(1) of $54.0 million, or
20.4% of Shack sales.
- Net income of $8.1 million versus a net loss of
$2.3 million in 2022.
- Adjusted EBITDA(1) of $35.8 million, up 80.7% versus
2022.
- Net income attributable to Shake Shack Inc. of $7.6
million, or earnings of $0.19 per diluted share.
- Adjusted pro forma net income(1) of $7.5 million,
or earnings of $0.17 per fully exchanged and diluted
share.
- Opened 10 new domestic Company-operated Shacks. Opened 15 new
licensed Shacks, including locations in the Bahamas and China.
Shake Shack Inc. (“Shake Shack” or the “Company”) (NYSE:
SHAK) has posted its results for the third quarter of 2023 in a
Shareholder Letter in the Quarterly Results section of the
Company's Investor Relations website, which can be found here: Q3
2023 Shake Shack Shareholder Letter.
Shake Shack will host a conference call at 8:00 a.m. ET. Hosting
the call will be Randy Garutti, Chief Executive Officer, and
Katherine Fogertey, Chief Financial Officer. The conference call
can be accessed live over the phone by dialing (877) 407-0792, or
for international callers by dialing (201) 689-8263. A replay of
the call will be available until November 09, 2023 by dialing (844)
512-2921 or for international callers by dialing (412) 317-6671;
the passcode is 13740704.
The live audio webcast of the conference call will be accessible
in the Events & Presentations section of the Company's Investor
Relations website at investor.shakeshack.com. An archived replay of
the webcast will also be available shortly after the live event has
concluded.
(1)
Shack-level operating profit, Adjusted
EBITDA and Adjusted pro forma net income (loss) are non-GAAP
measures. A reconciliation to the most directly comparable
financial measures presented in accordance with GAAP is set forth
in the schedules accompanying this release. See “Non-GAAP Financial
Measures” below.
About Shake Shack
Shake Shack serves elevated versions of American classics using
only the best ingredients. It’s known for its delicious
made-to-order Angus beef burgers, crispy chicken, hand-spun
milkshakes, house-made lemonades, beer, wine, and more. With its
high-quality food at a great value, warm hospitality, and a
commitment to crafting uplifting experiences, Shake Shack quickly
became a cult-brand with widespread appeal. Shake Shack’s purpose
is to Stand For Something Good®, from its premium ingredients and
employee development, to its inspiring designs and deep community
investment. Since the original Shack opened in 2004 in NYC’s
Madison Square Park, the Company has expanded to over 500 locations
system-wide, including over 320 in 33 U.S. States and the District
of Columbia, and 180 international locations across London, Hong
Kong, Shanghai, Singapore, Mexico City, Istanbul, Dubai, Tokyo,
Seoul and more.
Skip the line with the Shack App, a mobile ordering app
that lets you save time by ordering ahead! Guests can select their
location, pick their food, choose a pickup time and their meal will
be cooked-to-order and timed to arrival. Available on iOS and
Android.
Definitions
The following definitions apply to these terms as used in this
release:
"Shack sales" is defined as the aggregate sales of food,
beverages, gift card breakage income and Shake Shack branded
merchandise at domestic Company-operated Shacks and excludes sales
from licensed Shacks.
“System-wide sales” is an operating measure and consists of
sales from the Company's domestic Company-operated Shacks, domestic
licensed Shacks and international licensed Shacks. The Company does
not recognize the sales from licensed Shacks as revenue. Of these
amounts, revenue is limited to licensing revenue based on a
percentage of sales from domestic and international licensed
Shacks, as well as certain up-front fees, such as territory fees
and opening fees.
"Same-Shack sales" represents Shack sales for the comparable
Shack base, which is defined as the number of domestic
Company-operated Shacks open for 24 full fiscal months or longer.
For consecutive days that Shacks were temporarily closed, the
comparative period was also adjusted.
"Shack-level operating profit," a non-GAAP measure, also
referred to as restaurant profit, is defined as Shack sales less
Shack-level operating expenses including Food and paper costs,
Labor and related expenses, Other operating expenses and Occupancy
and related expenses.
"Shack-level operating profit margin," a non-GAAP measure, also
referred to as restaurant margin, is defined as Shack sales less
Shack-level operating expenses including Food and paper costs,
Labor and related expenses, Other operating expenses and Occupancy
and related expenses as a percentage of Shack sales.
“EBITDA,” a non-GAAP measure, is defined as Net income (loss)
before interest expense (net of interest income), Income tax
expense (benefit), and Depreciation and amortization expense.
“Adjusted EBITDA,” a non-GAAP measure, is defined as EBITDA (as
defined above), excluding equity-based compensation expense,
Impairment and loss on disposal of assets, amortization of
cloud-based software implementation costs, as well as certain
non-recurring items that the Company does not believe directly
reflect its core operations and may not be indicative of the
Company's recurring business operations.
"Adjusted pro forma net income," a non-GAAP measure, represents
Net income (loss) attributable to Shake Shack Inc. assuming the
full exchange of all outstanding SSE Holdings, LLC membership
interests ("LLC Interests") for shares of Class A common stock,
adjusted for certain non-recurring and other items that the Company
does not believe directly reflect its core operations and may not
be indicative of the Company's recurring business operations.
SHAKE SHACK INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(UNAUDITED)
(in thousands, except share and
per share amounts)
September 27
2023
December 28
2022
ASSETS
Current assets:
Cash and cash equivalents
$
190,020
$
230,521
Marketable securities
94,957
80,707
Accounts receivable, net
13,889
13,877
Inventories
4,608
4,184
Prepaid expenses and other current
assets
19,762
14,699
Total current assets
323,236
343,988
Property and equipment, net of accumulated depreciation of $353,303
and $290,362, respectively
525,557
467,031
Operating lease assets
397,870
367,488
Deferred income taxes, net
302,156
300,538
Other assets
16,037
15,817
TOTAL ASSETS
$
1,564,856
$
1,494,862
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable
$
21,251
$
20,407
Accrued expenses
47,630
47,945
Accrued wages and related liabilities
18,164
17,576
Operating lease liabilities, current
47,610
42,238
Other current liabilities
17,522
19,552
Total current liabilities
152,177
147,718
Long-term debt
245,375
244,589
Long-term operating lease liabilities
463,370
427,227
Liabilities under tax receivable
agreement, net of current portion
235,614
234,893
Other long-term liabilities
26,322
20,687
Total liabilities
1,122,858
1,075,114
Commitments and contingencies
Stockholders' equity:
Preferred stock, no par value—10,000,000
shares authorized; none issued and outstanding as of September 27,
2023 and December 28, 2022.
—
—
Class A common stock, $0.001 par
value—200,000,000 shares authorized; 39,466,268 and
39,284,998 shares issued and outstanding
as of September 27, 2023 and December 28, 2022, respectively.
39
39
Class B common stock, $0.001 par
value—35,000,000 shares authorized; 2,834,513 and
2,869,513 shares issued and outstanding as
of September 27, 2023 and December 28, 2022, respectively.
3
3
Additional paid-in capital
423,811
415,611
Accumulated deficit
(7,496)
(20,537)
Accumulated other comprehensive loss
(3)
—
Total stockholders' equity attributable to
Shake Shack Inc.
416,354
395,116
Non-controlling interests
25,644
24,632
Total equity
441,998
419,748
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$
1,564,856
$
1,494,862
SHAKE SHACK INC.
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME (LOSS)
(UNAUDITED)
(in thousands, except per share
amounts)
Thirteen Weeks Ended
Thirty-Nine Weeks
Ended
September 27
2023
September 28
2022
September 27
2023
September 28
2022
Shack sales
$
264,980
95.9 %
$
219,501
96.4 %
$
771,044
96.2 %
$
639,346
96.6 %
Licensing revenue
11,227
4.1 %
8,313
3.6 %
30,246
3.8 %
22,611
3.4 %
TOTAL REVENUE
276,207
100.0 %
227,814
100.0 %
801,290
100.0 %
661,957
100.0 %
Shack-level operating expenses(1):
Food and paper costs
77,180
29.1 %
67,774
30.9 %
224,752
29.1 %
193,645
30.3 %
Labor and related expenses
76,233
28.8 %
64,638
29.4 %
225,655
29.3 %
190,954
29.9 %
Other operating expenses(2)
37,307
14.1 %
33,680
15.3 %
108,352
14.1 %
96,002
15.0 %
Occupancy and related expenses
20,300
7.7 %
17,337
7.9 %
58,684
7.6 %
50,270
7.9 %
General and administrative expenses(2)
30,939
11.2 %
26,931
11.8 %
93,726
11.7 %
87,804
13.3 %
Depreciation and amortization expense
23,130
8.4 %
18,647
8.2 %
66,704
8.3 %
53,589
8.1 %
Pre-opening costs
4,969
1.8 %
3,041
1.3 %
14,103
1.8 %
8,576
1.3 %
Impairment and loss on disposal of
assets
492
0.2 %
592
0.3 %
2,098
0.3 %
1,697
0.3 %
TOTAL EXPENSES
270,550
98.0 %
232,640
102.1 %
794,074
99.1 %
682,537
103.1 %
INCOME (LOSS) FROM OPERATIONS
5,657
2.0 %
(4,826)
(2.1) %
7,216
0.9 %
(20,580)
(3.1) %
Other income, net
3,441
1.2 %
1,482
0.7 %
9,505
1.2 %
1,731
0.3 %
Interest expense
(433)
(0.2) %
(475)
(0.2) %
(1,241)
(0.2) %
(1,145)
(0.2) %
INCOME (LOSS) BEFORE INCOME
TAXES
8,665
3.1 %
(3,819)
(1.7) %
15,480
1.9 %
(19,994)
(3.0) %
Income tax expense (benefit)
529
0.2 %
(1,508)
(0.7) %
1,743
0.2 %
(5,098)
(0.8) %
NET INCOME (LOSS)
8,136
2.9 %
(2,311)
(1.0) %
13,737
1.7 %
(14,896)
(2.3) %
Less: Net income (loss) attributable to
non-controlling interests
509
0.2 %
(287)
(0.1) %
696
0.1 %
(1,522)
(0.2) %
NET INCOME (LOSS) ATTRIBUTABLE TO SHAKE
SHACK INC.
$
7,627
2.8 %
$
(2,024)
(0.9) %
$
13,041
1.6 %
$
(13,374)
(2.0) %
Earnings (loss) per share of Class A
common stock:
Basic
$
0.19
$
(0.05)
$
0.33
$
(0.34)
Diluted
$
0.19
$
(0.05)
$
0.31
$
(0.34)
Weighted average shares of Class A common
stock outstanding:
Basic
39,460
39,274
39,402
39,221
Diluted
43,978
39,274
43,884
39,221
_____________________
(1)
As a percentage of Shack sales.
(2)
The Company has elected to reclassify certain marketing expenses
from Other operating expenses to General and administrative
expenses for the thirteen and thirty-nine weeks ended September 27,
2023. The prior periods have been updated to conform with the
current year presentation. The reclassification does not have a
material impact on our results.
SHAKE SHACK INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)
Thirty-Nine Weeks
Ended
September 27
2023
September 28
2022
OPERATING ACTIVITIES
Net income (loss) (including amounts
attributable to non-controlling interests)
$
13,737
$
(14,896)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities
Depreciation and amortization expense
66,704
53,589
Amortization of debt issuance costs
786
786
Amortization of cloud computing asset
1,320
1,080
Non-cash operating lease cost
49,775
43,159
Equity-based compensation
11,220
10,155
Deferred income taxes
7,092
12,215
Non-cash interest expense
94
181
Gain on sale of equity securities
(81)
—
Net amortization of discount on
held-to-maturity securities
(939)
—
Impairment and loss on disposal of
assets
2,098
1,697
Unrealized loss on equity securities
—
400
Changes in operating assets and
liabilities:
Accounts receivable
(12)
1,840
Inventories
(424)
(146)
Prepaid expenses and other current
assets
(3,056)
(4,767)
Other assets
(4,750)
(5,966)
Accounts payable
(5,064)
(2,069)
Accrued expenses
(6,424)
(17,783)
Accrued wages and related liabilities
555
3,052
Other current liabilities
(2,757)
4,376
Operating lease liabilities
(41,725)
(32,558)
Other long-term liabilities
2,442
(10)
NET CASH PROVIDED BY OPERATING
ACTIVITIES
90,591
54,335
INVESTING ACTIVITIES
Purchases of property and equipment
(113,033)
(94,797)
Purchases of held-to-maturity
securities
(94,019)
—
Purchases of equity securities
(690)
(415)
Sales of equity securities
81,478
—
NET CASH USED IN INVESTING
ACTIVITIES
(126,264)
(95,212)
FINANCING ACTIVITIES
Payments on principal of finance
leases
(2,383)
(2,260)
Distributions paid to non-controlling
interest holders
(131)
(389)
Proceeds from stock option exercises
631
334
Employee withholding taxes related to net
settled equity awards
(2,942)
(2,214)
NET CASH USED IN FINANCING
ACTIVITIES
(4,825)
(4,529)
Effect of exchange rate changes on cash
and cash equivalents
(3)
(2)
DECREASE IN CASH AND CASH
EQUIVALENTS
(40,501)
(45,408)
CASH AND CASH EQUIVALENTS AT BEGINNING
OF PERIOD
230,521
302,406
CASH AND CASH EQUIVALENTS AT END OF
PERIOD
$
190,020
$
256,998
SHAKE SHACK INC. NON-GAAP FINANCIAL
MEASURES (UNAUDITED)
To supplement the condensed consolidated financial statements,
which are prepared and presented in accordance with U.S. generally
accepted accounting principles (“GAAP”), the Company uses the
following non-GAAP financial measures: Shack-level operating
profit, Shack-level operating profit margin, EBITDA, adjusted
EBITDA, adjusted EBITDA margin, adjusted pro forma net income
(loss) and adjusted pro forma earnings (loss) per fully exchanged
and diluted share (collectively the "non-GAAP financial
measures").
Shack-Level Operating Profit
Shack-level operating profit, also referred to as restaurant
profit, is defined as Shack sales less Shack-level operating
expenses including Food and paper costs, Labor and related
expenses, Other operating expenses and Occupancy and related
expenses.
How This Measure Is Useful
When used in conjunction with GAAP financial measures,
Shack-level operating profit and Shack-level operating profit
margin are supplemental measures of operating performance that the
Company believes are useful measures to evaluate the performance
and profitability of its Shacks. Additionally, Shack-level
operating profit and Shack-level operating profit margin are key
metrics used internally by management to develop internal budgets
and forecasts, as well as assess the performance of its Shacks
relative to budget and against prior periods. It is also used to
evaluate employee compensation as it serves as a metric in certain
performance-based employee bonus arrangements. The Company believes
presentation of Shack-level operating profit and Shack-level
operating profit margin provides investors with a supplemental view
of its operating performance that can provide meaningful insights
to the underlying operating performance of the Shacks, as these
measures depict the operating results that are directly impacted by
the Shacks and exclude items that may not be indicative of, or are
unrelated to, the ongoing operations of the Shacks. It may also
assist investors to evaluate the Company's performance relative to
peers of various sizes and maturities and provides greater
transparency with respect to how management evaluates the business,
as well as the financial and operational decision-making.
Limitations of the Usefulness of this Measure
Shack-level operating profit and Shack-level operating profit
margin may differ from similarly titled measures used by other
companies due to different methods of calculation. Presentation of
Shack-level operating profit and Shack-level operating profit
margin is not intended to be considered in isolation or as a
substitute for, or superior to, the financial information prepared
and presented in accordance with GAAP. Shack-level operating profit
excludes certain costs, such as General and administrative expenses
and Pre-opening costs, which are considered normal, recurring cash
operating expenses and are essential to support the operation and
development of the Company's Shacks. Therefore, this measure may
not provide a complete understanding of the Company's operating
results as a whole and Shack-level operating profit and Shack-level
operating profit margin should be reviewed in conjunction with the
Company's GAAP financial results. A reconciliation of Shack-level
operating profit to Loss from Operations, the most directly
comparable GAAP financial measure, is set forth below.
Thirteen Weeks Ended
Thirty-Nine Weeks
Ended
(dollar amounts in thousands)
September 27
2023
September 28
2022
September 27
2023
September 28
2022
Income (loss) from operations
$
5,657
$
(4,826)
$
7,216
$
(20,580)
Less:
Licensing revenue
11,227
8,313
30,246
22,611
Add:
General and administrative expenses(1)
30,939
26,931
93,726
87,804
Depreciation and amortization expense
23,130
18,647
66,704
53,589
Pre-opening costs
4,969
3,041
14,103
8,576
Impairment and loss on disposal of
assets
492
592
2,098
1,697
Shack-level operating profit
$
53,960
$
36,072
$
153,601
$
108,475
Total revenue
$
276,207
$
227,814
$
801,290
$
661,957
Less: Licensing revenue
11,227
8,313
30,246
22,611
Shack sales
$
264,980
$
219,501
$
771,044
$
639,346
Shack-level operating profit
margin(2,3)
20.4 %
16.4 %
19.9 %
17.0 %
(1)
Certain marketing expenses have been
reclassified from Other operating expenses to General and
administrative expenses in the prior year to conform with the
current year presentation. The reclassification does not have a
material impact on our results.
(2)
For the thirty-nine weeks ended September
28, 2022, Shack-level operating profit margin includes a $1,281
cumulative catch-up adjustment for gift card breakage income,
recognized in Shack sales.
(3)
As a percentage of Shack sales.
SHAKE SHACK INC. NON-GAAP FINANCIAL
MEASURES (UNAUDITED)
EBITDA and Adjusted EBITDA
EBITDA is defined as Net income (loss) before interest expense
(net of interest income), Income tax expense (benefit) and
Depreciation and amortization expense. Adjusted EBITDA is defined
as EBITDA (as defined above) excluding equity-based compensation
expense, Impairment and loss on the disposal of assets,
amortization of cloud-based software implementation costs, as well
as certain non-recurring items that the Company does not believe
directly reflect its core operations and may not be indicative of
the Company's recurring business operations.
In the first quarter of 2023, the Company revised its definition
of Adjusted EBITDA to exclude deferred lease costs and executive
transition costs as adjustments to the measure. The Company
believes excluding both of these items improves the usefulness of
Adjusted EBITDA as these items are characteristic of the Company’s
ongoing operations and such presentation is consistent with other
companies in the restaurant industry. Previously reported periods
have been revised to conform to the current period
presentation.
How These Measures Are Useful
When used in conjunction with GAAP financial measures, EBITDA
and adjusted EBITDA are supplemental measures of operating
performance that the Company believes are useful measures to
facilitate comparisons to historical performance and competitors'
operating results. Adjusted EBITDA is a key metric used internally
by management to develop internal budgets and forecasts and also
serves as a metric in its performance-based equity incentive
programs and certain bonus arrangements. The Company believes
presentation of EBITDA and adjusted EBITDA provides investors with
a supplemental view of the Company's operating performance that
facilitates analysis and comparisons of its ongoing business
operations because they exclude items that may not be indicative of
the Company's ongoing operating performance.
Limitations of the Usefulness of These Measures
EBITDA and adjusted EBITDA may differ from similarly titled
measures used by other companies due to different methods of
calculation. Presentation of EBITDA and adjusted EBITDA is not
intended to be considered in isolation or as a substitute for, or
superior to, the financial information prepared and presented in
accordance with GAAP. EBITDA and adjusted EBITDA exclude certain
normal recurring expenses. Therefore, these measures may not
provide a complete understanding of the Company's performance and
should be reviewed in conjunction with the GAAP financial
measures.
Thirteen Weeks Ended
Thirty-Nine Weeks
Ended
(dollar amounts in thousands)
September 27
2023
September 28
2022
September 27
2023
September 28
2022
Net income (loss)
$
8,136
$
(2,311)
$
13,737
$
(14,896)
Depreciation and amortization expense
23,130
18,647
66,704
53,589
Interest expense, net
(845)
475
(164)
1,145
Income tax expense (benefit)
529
(1,508)
1,743
(5,098)
EBITDA
$
30,950
$
15,303
$
82,020
$
34,740
Equity-based compensation
3,691
3,515
11,425
10,155
Amortization of cloud-based software
implementation costs
440
397
1,320
1,080
Impairment and loss on disposal of
assets
492
592
2,098
1,697
Legal settlements
—
—
1,004
6,750
Severance
211
—
211
—
Gift card breakage cumulative catch-up
adjustment
—
—
—
(1,281)
Other(1)
—
—
2,321
—
Adjusted EBITDA
$
35,784
$
19,807
$
100,399
$
53,141
Adjusted EBITDA margin(2)
13.0 %
8.7 %
12.5 %
8.0 %
(1)
Related to professional fees for a
non-recurring matter.
(2)
Calculated as a percentage of Total
revenue, which was $276.2 million and $801.3 million for the
thirteen and thirty-nine weeks ended September 27, 2023,
respectively, and $227.8 million and $662.0 million for the
thirteen and thirty-nine weeks ended September 28, 2022,
respectively.
SHAKE SHACK INC. NON-GAAP FINANCIAL
MEASURES (UNAUDITED)
Adjusted Pro Forma Net Income (Loss) and Adjusted Pro Forma
Earnings (Loss) Per Fully Exchanged and Diluted Share
Adjusted pro forma net income (loss) represents Net income
(loss) attributable to Shake Shack Inc. assuming the full exchange
of all outstanding SSE Holdings, LLC membership interests ("LLC
Interests") for shares of Class A common stock, adjusted for
certain non-recurring items that the Company does not believe are
directly related to its core operations and may not be indicative
of recurring business operations. Adjusted pro forma earnings
(loss) per fully exchanged and diluted share is calculated by
dividing adjusted pro forma net income (loss) by the
weighted-average shares of Class A common stock outstanding,
assuming the full exchange of all outstanding LLC Interests, after
giving effect to the dilutive effect of outstanding equity-based
awards.
In the first quarter of 2023, the Company revised its definition
of Adjusted Pro Forma Net Income to exclude executive transition
costs as an adjustment to the measure. Previously reported periods
have been revised to conform to the current period presentation.
See "EBITDA and Adjusted EBITDA" above for additional
information.
How These Measures Are Useful
When used in conjunction with GAAP financial measures, adjusted
pro forma net income (loss) and adjusted pro forma earnings (loss)
per fully exchanged and diluted share are supplemental measures of
operating performance that the Company believes are useful measures
to evaluate performance period over period and relative to its
competitors. By assuming the full exchange of all outstanding LLC
Interests, the Company believes these measures facilitate
comparisons with other companies that have different organizational
and tax structures, as well as comparisons period over period
because it eliminates the effect of any changes in Net income
(loss) attributable to Shake Shack Inc. driven by increases in its
ownership of SSE Holdings, which are unrelated to the Company's
operating performance, and excludes items that are non-recurring or
may not be indicative of ongoing operating performance.
Limitations of the Usefulness of These Measures
Adjusted pro forma net income (loss) and adjusted pro forma
earnings (loss) per fully exchanged and diluted share may differ
from similarly titled measures used by other companies due to
different methods of calculation. Presentation of adjusted pro
forma net income (loss) and adjusted pro forma earnings (loss) per
fully exchanged and diluted share should not be considered
alternatives to Net income (loss) and earnings (loss) per share, as
determined under GAAP. While these measures are useful in
evaluating the Company's performance, it does not account for the
earnings attributable to the non-controlling interest holders and
therefore does not provide a complete understanding of the Net
income (loss) attributable to Shake Shack Inc. Adjusted pro forma
net income (loss) and adjusted pro forma earnings (loss) per fully
exchanged and diluted share should be evaluated in conjunction with
GAAP financial results.
Thirteen Weeks Ended
Thirty-Nine Weeks
Ended
(in thousands, except per share
amounts)
September 27
2023
September 28
2022
September 27
2023
September 28
2022
Numerator:
Net income (loss) attributable to Shake
Shack Inc.
$
7,627
$
(2,024)
$
13,041
$
(13,374)
Adjustments:
Reallocation of Net income (loss)
attributable to non-controlling interests from the assumed exchange
of LLC Interests(1)
509
(287)
696
(1,522)
Legal settlements
—
—
1,004
6,750
Gift card breakage cumulative catch-up
adjustment
—
—
—
(1,281)
Severance
211
—
211
—
Other(2)
—
—
2,321
—
Tax impact of above adjustments(3)
(810)
(11)
(2,146)
(922)
Adjusted pro forma net income (loss)
$
7,537
$
(2,322)
$
15,127
$
(10,349)
Denominator:
Weighted average shares of Class A common
stock outstanding—diluted
43,978
39,274
43,884
39,221
Adjustments:
Assumed exchange of LLC Interests for
shares of Class A common stock(1)
—
2,871
—
2,899
Adjusted pro forma fully exchanged
weighted average shares of Class A common stock
outstanding—diluted
43,978
42,145
43,884
42,120
Adjusted pro forma earnings (loss) per
fully exchanged share—diluted
$
0.17
$
(0.06)
$
0.34
$
(0.25)
Thirteen Weeks Ended
Thirty-Nine Weeks
Ended
September 27
2023
September 28
2022
September 27
2023
September 28
2022
Earnings (loss) per share of Class A
common stock—diluted
$
0.19
$
(0.05)
$
0.31
$
(0.34)
Assumed exchange of LLC Interests for
shares of Class A common stock(1)
—
—
—
(0.01)
Non-GAAP adjustments(4)
(0.02)
(0.01)
0.03
0.10
Adjusted pro forma earnings (loss) per
fully exchanged share—diluted
$
0.17
$
(0.06)
$
0.34
$
(0.25)
(1)
Assumes the exchange of all outstanding
LLC Interests for shares of Class A common stock, resulting in the
elimination of the non-controlling interest and recognition of the
net income (loss) attributable to non-controlling interests.
(2)
Related to professional fees for a
non-recurring matter.
(3)
Represents the tax effect of the
aforementioned adjustments and pro forma adjustments to reflect
corporate income taxes at assumed effective tax rates of 15.1% and
20.5% for the thirteen and thirty-nine weeks ended September 27,
2023, respectively, and 39.2% and 28.8% for the thirteen and
thirty-nine weeks ended September 28, 2022, respectively. Amounts
include provisions for U.S. federal income taxes, certain LLC
entity-level taxes and foreign withholding taxes, assuming the
highest statutory rates apportioned to each applicable state, local
and foreign jurisdiction.
(4)
Represents the per share impact of non-GAAP adjustments for each
period. Refer to the reconciliation of Adjusted Pro Forma Net
Income (Loss) above, for additional information.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231101964070/en/
Media:
Meg Davis, Shake Shack mcastranova@shakeshack.com
Investor Relations:
Melissa Calandruccio, ICR Michelle Michalski, ICR (844) SHACK-04
(844-742-2504) investor@shakeshack.com
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