Shake Shack (SHAK) investor relations material

Business performance and outlook

• Achieving double-digit revenue growth and 22%-23% operating margins, with strong new store sales growth despite cost headwinds from beef and distribution prices.

• Three straight quarters of positive traffic growth and 21 consecutive quarters of positive comp growth highlight robust fundamentals.

• Updated margin guidance reflects current cost pressures and competitive landscape.

• Expansion plans include opening 60-65 new company-operated locations this year, supported by a strong real estate pipeline and improved construction costs.

• Capital allocation prioritizes new store openings, with ongoing investments in existing locations, technology, and operational initiatives.

Operational improvements and technology

• Operational efficiencies have led to 170 basis points of restaurant-level margin expansion over two years.

• Labor productivity has improved, with a focus on labor attainment and reducing overtime, contributing to margin growth.

• Supply chain optimization through RFPs and supplier negotiations has enhanced cost control without compromising quality.

• Project Catalyst leverages AI and data tools to boost productivity at store, regional, and corporate levels, enabling faster, data-driven decisions.

• Remodels are targeted and cost-effective, focusing on maintaining comfort and care rather than large-scale overhauls.

Marketing, menu innovation, and customer engagement

• Increased marketing investment, including first paid media ads, has driven three consecutive quarters of traffic growth.

• Menu innovation follows a quarterly cadence, with major platform launches and smaller cultural tie-ins to drive engagement.

• Loyalty program launching later this year aims to foster deeper brand love and personalized guest experiences beyond points and discounts.

• Guest recognition technology enables personalized outreach and supports loyalty initiatives.

• World Cup activations are expected to benefit sales, especially in destination markets, despite recent softness in tourism.