Financial Highlights for the Fourth Quarter 2024:
- Total revenue of $328.7 million, up 14.8% versus 2023,
including $316.6 million of Shack sales and $12.1 million of
Licensing revenue.
- System-wide sales of $500.7 million, up 13.3% versus
2023.
- Same-Shack sales up 4.3% versus 2023.
- Operating income of $10.2 million.
- Restaurant-level profit(1) of $71.9 million, or 22.7% of
Shack sales.
- Net income of $9.3 million.
- Adjusted EBITDA(1) of $46.7 million.
- Net income attributable to Shake Shack Inc. of $8.7
million, or earnings of $0.21 per diluted share.
- Adjusted pro forma net income(1) of $11.6 million, or
earnings of $0.26 per fully exchanged and diluted share.
- Opened 19 new Company-operated Shacks and nine new licensed
Shacks.
Financial Highlights for the Fiscal Year 2024:
- Total revenue of $1,252.6 million, up 15.2% versus 2023,
including $1,207.6 million of Shack sales and $45.0 million
of Licensing revenue.
- System-wide sales of $1,922.7 million, up 13.0% versus
2023.
- Same-Shack sales up 3.6% versus 2023.
- Operating income of $3.0 million.
- Restaurant-level profit(1) of $257.9 million, or 21.4%
of Shack sales.
- Net income of $10.8 million.
- Adjusted EBITDA(1) of $175.6 million.
- Net income attributable to Shake Shack Inc. of $10.2
million, or earnings of $0.24 per diluted share.
- Adjusted pro forma net income(1) of $40.5 million, or
earnings of $0.92 per fully exchanged and diluted share.
- Opened 43 new Company-operated Shacks and 33 new licensed
Shacks.
Shake Shack Inc. (“Shake Shack” or the “Company”) (NYSE:
SHAK) has posted its results for the fourth quarter and the fiscal
year ended December 25, 2024 in a Shareholder Letter in the
Quarterly Results section of the Company's Investor Relations
website, which can be found here: Q4 2024 Shareholder Letter.
Shake Shack will host a conference call at 8:00 a.m. ET. Hosting
the call will be Robert Lynch, 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 February 27, 2025 by dialing (844)
512-2921 or for international callers by dialing (412) 317-6671;
the passcode is 13750490.
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)
Restaurant-level 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 570 locations
system-wide, including over 370 in 34 U.S. States and the District
of Columbia, and over 200 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 Company-operated Shacks and 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 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 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.
"Restaurant-level profit," a non-GAAP measure, also formerly
referred to as Shack-level operating 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.
"Restaurant-level profit margin," a non-GAAP measure, also
formerly referred to as Shack-level operating profit 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,
Impairments, loss on disposal of assets, and Shack closures,
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 items that the Company does not
believe are directly reflected to its core operations and may not
be indicative of its recurring business operations.
SHAKE SHACK INC.
CONSOLIDATED BALANCE
SHEETS
(UNAUDITED)
(in thousands, except share and
per share amounts)
December 25
2024
December 27
2023
ASSETS
Current assets
Cash and cash equivalents
$
320,714
$
224,653
Marketable securities
—
68,561
Accounts receivable, net
19,687
16,847
Inventories
6,014
5,404
Prepaid expenses and other current
assets
21,801
18,967
Total current assets
368,216
334,432
Property and equipment, net of accumulated
depreciation of $457,186 and $376,760, respectively
551,600
530,995
Operating lease assets
424,611
398,296
Deferred income taxes, net
341,586
326,208
Other assets
10,958
15,926
TOTAL ASSETS
$
1,696,971
$
1,605,857
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities
Accounts payable
$
23,609
$
22,273
Accrued expenses
63,005
54,742
Accrued wages and related liabilities
25,422
20,945
Operating lease liabilities, current
55,739
49,004
Other current liabilities
19,538
17,103
Total current liabilities
187,313
164,067
Long-term debt
246,683
245,636
Long-term operating lease liabilities
494,499
464,533
Liabilities under tax receivable
agreement, net of current portion
247,017
235,613
Other long-term liabilities
27,833
26,638
Total liabilities
1,203,345
1,136,487
Commitments and contingencies
Stockholders' equity:
Preferred stock, no par value—10,000,000
shares authorized; none issued and outstanding as of December 25,
2024 and December 27, 2023.
—
—
Class A common stock, $0.001 par
value—200,000,000 shares authorized; 40,068,068 and 39,474,315
shares issued and outstanding as of December 25, 2024 and December
27, 2023, respectively.
40
39
Class B common stock, $0.001 par
value—35,000,000 shares authorized; 2,455,713 and 2,834,513 shares
issued and outstanding as of December 25, 2024 and December 27,
2023, respectively.
2
3
Additional paid-in capital
442,993
426,601
Retained earnings
26,984
16,777
Accumulated other comprehensive loss
(1
)
(3
)
Total stockholders' equity attributable to
Shake Shack Inc.
470,018
443,417
Non-controlling interests
23,608
25,953
Total equity
493,626
469,370
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY
$
1,696,971
$
1,605,857
SHAKE SHACK INC.
CONSOLIDATED STATEMENTS OF
INCOME
(UNAUDITED)
(in thousands, except per share
amounts)
Thirteen Weeks Ended
Fifty-Two Weeks Ended
December 25
2024
December 27
2023
December 25
2024
December 27
2023
Shack sales
$
316,632
96.3
%
$
275,775
96.3
%
$
1,207,561
96.4
%
$
1,046,819
96.3
%
Licensing revenue
12,052
3.7
%
10,468
3.7
%
45,047
3.6
%
40,714
3.7
%
TOTAL REVENUE
328,684
100.0
%
286,243
100.0
%
1,252,608
100.0
%
1,087,533
100.0
%
Shack-level operating expenses(1):
Food and paper costs
88,578
28.0
%
80,289
29.1
%
339,940
28.2
%
305,041
29.1
%
Labor and related expenses
85,104
26.9
%
78,599
28.5
%
338,750
28.1
%
304,254
29.1
%
Other operating expenses
47,008
14.8
%
41,097
14.9
%
178,381
14.8
%
149,449
14.3
%
Occupancy and related expenses
24,047
7.6
%
21,162
7.7
%
93,069
7.7
%
79,846
7.6
%
General and administrative expenses
41,099
12.5
%
35,816
12.5
%
149,047
11.9
%
129,542
11.9
%
Depreciation and amortization expense
25,809
7.9
%
24,538
8.6
%
102,468
8.2
%
91,242
8.4
%
Pre-opening costs
5,118
1.6
%
5,128
1.8
%
15,547
1.2
%
19,231
1.8
%
Impairments, loss on disposal of assets,
and Shack closures
1,711
0.5
%
909
0.3
%
32,368
2.6
%
3,007
0.3
%
TOTAL EXPENSES
318,474
96.9
%
287,538
100.5
%
1,249,570
99.8
%
1,081,612
99.5
%
INCOME (LOSS) FROM OPERATIONS
10,210
3.1
%
(1,295
)
(0.5
)%
3,038
0.2
%
5,921
0.5
%
Other income, net
3,241
1.0
%
3,271
1.1
%
13,251
1.1
%
12,776
1.2
%
Interest expense
(512
)
(0.2
)%
(476
)
(0.2
)%
(2,045
)
(0.2
)%
(1,717
)
(0.2
)%
INCOME BEFORE INCOME TAXES
12,939
3.9
%
1,500
0.5
%
14,244
1.1
%
16,980
1.6
%
Income tax expense (benefit)
3,606
1.1
%
(5,753
)
(2.0
)%
3,424
0.3
%
(4,010
)
(0.4
)%
NET INCOME
9,333
2.8
%
7,253
2.5
%
10,820
0.9
%
20,990
1.9
%
Less: Net income attributable to
non-controlling interests
623
0.2
%
30
—
%
613
—
%
726
0.1
%
NET INCOME ATTRIBUTABLE TO SHAKE SHACK
INC.
$
8,710
2.6
%
$
7,223
2.5
%
$
10,207
0.8
%
$
20,264
1.9
%
Earnings per share of Class A common
stock:
Basic
$
0.22
$
0.18
$
0.26
$
0.51
Diluted
$
0.21
$
0.17
$
0.24
$
0.48
Weighted-average shares of Class A common
stock outstanding:
Basic
40,047
39,470
39,830
39,419
Diluted
41,872
43,944
44,203
43,899
_________________
(1)
As a percentage of Shack sales.
SHAKE SHACK INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(UNAUDITED)
(in thousands)
Fifty-Two Weeks Ended
December 25
2024
December 27
2023
OPERATING ACTIVITIES
Net income (loss) (including amounts
attributable to non-controlling interests)
$
10,820
$
20,990
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation and amortization expense
102,468
91,242
Amortization of debt issuance costs
1,047
1,047
Amortization of cloud computing assets
2,138
1,798
Non-cash operating lease cost
77,432
67,781
Equity-based compensation
15,915
14,888
Deferred income taxes
(1,054
)
(9,074
)
Non-cash interest
(102
)
116
Gain on sale of equity securities
—
(81
)
Net amortization of discount on
held-to-maturity securities
(440
)
(1,620
)
Impairments, loss on disposal of assets,
and Shack closures
32,368
3,007
Changes in operating assets and
liabilities:
Accounts receivable
(2,839
)
(2,970
)
Inventories
(610
)
(1,220
)
Prepaid expenses and other current
assets
(2,629
)
(2,253
)
Other assets
(2,896
)
(6,307
)
Accounts payable
3,356
687
Accrued expenses
6,644
9,513
Accrued wages and related liabilities
4,477
3,328
Other current liabilities
(712
)
(2,809
)
Operating lease liabilities
(77,167
)
(58,216
)
Other long-term liabilities
2,939
2,292
NET CASH PROVIDED BY OPERATING
ACTIVITIES
171,155
132,139
INVESTING ACTIVITIES
Purchases of property and equipment
(135,499
)
(146,167
)
Purchases of held-to-maturity
securities
—
(94,019
)
Maturities of held-to-maturity marketable
securities
69,420
27,078
Purchases of equity securities
—
(690
)
Sales of equity securities
—
81,478
NET CASH USED IN INVESTING
ACTIVITIES
(66,079
)
(132,320
)
FINANCING ACTIVITIES
Payments on principal of finance
leases
(3,964
)
(3,272
)
Distributions paid to non-controlling
interest holders
(482
)
(162
)
Net proceeds from stock option
exercises
1,627
744
Employee withholding taxes related to net
settled equity awards
(6,198
)
(2,994
)
NET CASH USED IN FINANCING
ACTIVITIES
(9,017
)
(5,684
)
Effect of exchange rate changes on cash
and cash equivalents
2
(3
)
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS
96,061
(5,868
)
CASH AND CASH EQUIVALENTS AT BEGINNING
OF PERIOD
224,653
230,521
CASH AND CASH EQUIVALENTS AT END OF
PERIOD
$
320,714
$
224,653
SHAKE SHACK INC. NON-GAAP FINANCIAL
MEASURES (UNAUDITED)
To supplement the 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: Restaurant-level profit,
Restaurant-level profit margin, EBITDA, adjusted EBITDA, adjusted
EBITDA margin, adjusted pro forma net income and adjusted pro forma
earnings per fully exchanged and diluted share (collectively the
"non-GAAP financial measures").
Restaurant-Level Profit
Restaurant-level profit, also formerly referred to as
Shack-level operating 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,
Restaurant-level profit and Restaurant-level 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, Restaurant-level profit
and Restaurant-level 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 Restaurant-level
profit and Restaurant-level 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
Restaurant-level profit and Restaurant-level profit margin may
differ from similarly titled measures used by other companies due
to different methods of calculation. Presentation of
Restaurant-level profit and Restaurant-level 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. Restaurant-level 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 Restaurant-level profit and Restaurant-level profit
margin should be reviewed in conjunction with the Company's GAAP
financial results. A reconciliation of Restaurant-level profit to
Income (loss) from Operations, the most directly comparable GAAP
financial measure, is set forth below.
Thirteen Weeks Ended
Fifty-Two Weeks Ended
(dollar amounts in thousands)
December 25
2024
December 27
2023
December 25
2024
December 27
2023
Income (loss) from operations
$
10,210
$
(1,295
)
$
3,038
$
5,921
Less:
Licensing revenue
12,052
10,468
45,047
40,714
Add:
General and administrative expenses
41,099
35,816
149,047
129,542
Depreciation and amortization expense
25,809
24,538
102,468
91,242
Pre-opening costs
5,118
5,128
15,547
19,231
Impairments, loss on disposal of assets,
and Shack closures
1,711
909
32,368
3,007
Adjustment:
Employee benefit charges(1)
—
—
453
—
Restaurant-level profit
$
71,895
$
54,628
$
257,874
$
208,229
Total revenue
$
328,684
$
286,243
$
1,252,608
$
1,087,533
Less: Licensing revenue
12,052
10,468
45,047
40,714
Shack sales
$
316,632
$
275,775
$
1,207,561
$
1,046,819
Restaurant-level profit margin(2)
22.7
%
19.8
%
21.4
%
19.9
%
_________________
(1)
Expenses related to California healthcare
charges for fiscal 2020 through 2023 which do not represent fiscal
2024 Labor and related expenses.
(2)
As a percentage of Shack sales.
SHAKE SHACK INC. NON-GAAP FINANCIAL
MEASURES (UNAUDITED)
EBITDA and Adjusted EBITDA
EBITDA, a non-GAAP measure, is defined as Net income 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, Impairments, loss on
the disposal of assets, and Shack closures, 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.
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.
A reconciliation of EBITDA and adjusted EBITDA to Net income, the
most directly comparable GAAP measure, is set forth below.
Thirteen Weeks Ended
Fifty-Two Weeks Ended
(dollar amounts in thousands)
December 25
2024
December 27
2023
December 25
2024
December 27
2023
Net income
$
9,333
$
7,253
$
10,820
$
20,990
Depreciation and amortization expense
25,809
24,538
102,468
91,242
Interest (income) expense, net
474
(562
)
1,284
(726
)
Income tax expense (benefit)
3,606
(5,753
)
3,424
(4,010
)
EBITDA
39,222
25,476
117,996
107,496
Equity-based compensation
4,376
3,668
15,915
15,093
Amortization of cloud-based software
implementation costs
561
478
2,138
1,798
Impairments, loss on disposal of assets,
and Shack closures
1,711
909
32,368
3,007
Restatement costs(1)
778
—
2,378
—
CEO transition costs
38
206
679
206
Employee benefit charges(2)
—
—
453
—
Legal settlements(3)
—
(385
)
—
619
Severance
—
—
—
211
Other(4)
8
1,065
3,652
3,386
Adjusted EBITDA
$
46,694
$
31,417
$
175,579
$
131,816
Adjusted EBITDA margin(5)
14.2
%
11.0
%
14.0
%
12.1
%
_________________
(1)
Expenses incurred related to the
restatement of prior periods in the 2023 Form 10-K.
(2)
Expenses related to California healthcare
charges for fiscal 2020 through 2023 which do not represent fiscal
2024 Labor and related expenses.
(3)
Expenses incurred to establish accruals
related to the settlements of legal matters.
(4)
Expenses incurred for professional fees
related to non-recurring matters.
(5)
Calculated as a percentage of Total
revenue, which was $328.7 million and $1,252.6 million for the
thirteen and fifty-two weeks ended December 25, 2024, respectively,
and $286.2 million and $1,087.5 million for the thirteen and
fifty-two weeks ended December 27, 2023, 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 represents Net income 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 per fully exchanged and
diluted share is calculated by dividing adjusted pro forma net
income 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.
How These Measures Are Useful
When used in conjunction with GAAP financial measures, adjusted
pro forma net income and adjusted pro forma earnings 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
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 and adjusted pro forma earnings
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 and
adjusted pro forma earnings per fully exchanged and diluted share
should not be considered alternatives to Net income 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 (loss) attributable to the non-controlling
interest holders and therefore does not provide a complete
understanding of the Net income attributable to Shake Shack Inc.
Adjusted pro forma net income and adjusted pro forma earnings per
fully exchanged and diluted share should be evaluated in
conjunction with GAAP financial results. A reconciliation of
adjusted pro forma net income to Net income attributable to Shake
Shack Inc., the most directly comparable GAAP measure, and the
computation of adjusted pro forma earnings per fully exchanged and
diluted share are set forth below.
Thirteen Weeks Ended
Fifty-Two Weeks Ended
(in thousands, except per share
amounts)
December 25
2024
December 27
2023
December 25
2024
December 27
2023
Numerator:
Net income attributable to Shake Shack
Inc.
$
8,710
$
7,223
$
10,207
$
20,264
Adjustments:
Reallocation of Net income attributable to
non-controlling interests from the assumed exchange of LLC
Interests(1)
623
30
613
726
Restatement costs(2)
778
—
2,378
—
CEO transition costs
38
206
679
206
Employee benefit charges(3)
—
—
453
—
Impairment charge and Shack
closures(4)
1,191
—
29,348
—
Legal settlements
—
(385
)
—
619
Severance
—
—
—
211
Other(5)
8
1,065
3,652
3,386
Tax impact of above adjustments(6)
269
(7,108
)
(6,785
)
(9,254
)
Adjusted pro forma net income
$
11,617
$
1,031
$
40,545
$
16,158
Denominator:
Weighted-average shares of Class A common
stock outstanding—diluted
41,872
43,944
44,203
43,899
Adjustments:
Assumed exchange of LLC Interests for
shares of Class A common stock(1)
2,456
—
—
—
Adjusted pro forma fully exchanged
weighted-average shares of Class A common stock
outstanding—diluted
44,328
43,944
44,203
43,899
Adjusted pro forma loss per fully
exchanged share—diluted
$
0.26
$
0.02
$
0.92
$
0.37
Thirteen Weeks Ended
Fifty-Two Weeks Ended
December 25
2024
December 27
2023
December 25
2024
December 27
2023
Earnings per share of Class A common
stock—diluted
$
0.21
$
0.17
$
0.24
$
0.48
Non-GAAP adjustments(7)
0.05
(0.15
)
0.68
(0.11
)
Adjusted pro forma earnings per fully
exchanged share—diluted
$
0.26
$
0.02
$
0.92
$
0.37
_________________
(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 attributable to non-controlling interests.
(2)
Expenses incurred related to the
restatement of prior periods in the 2023 Form 10-K.
(3)
Expenses related to California healthcare
charges for fiscal 2020 through 2023 which do not represent fiscal
2024 Labor and related expenses.
(4)
Expenses incurred related to Shack
closures during fiscal 2024.
(5)
Expenses incurred for professional fees
related to non-recurring matters.
(6)
Represents the tax effect of the
aforementioned adjustments and pro forma adjustments to reflect
corporate income taxes at assumed effective tax rates of 22.3% and
20.1% for the thirteen and fifty-two weeks ended December 25, 2024,
respectively, and 56.8% and 24.5% for the thirteen and fifty-two
weeks ended December 27, 2023, 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.
(7)
Represents the per share impact of
non-GAAP adjustments for each period. Refer to the reconciliation
of Adjusted pro forma net income above, for additional
information.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250219067306/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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