Shake Shack (SHAK) Oppenheimer 26th Annual Consumer Growth and E-Commerce Conference summary

Business performance and guidance

• EBITDA guidance was reduced by about 5% due to higher-than-expected beef prices, but confidence remains in the business run rate and margin delivery of 22%-23%.

• Same-store sales guidance for Q2 is 2.5%-3%, with April being a temporary dip; World Cup-related revenue was excluded from forecasts for clarity.

• Annual comp guidance remains low single digits, with margin and EBITDA guidance reflecting cost inflation, especially in beef.

• New Shack openings target 16 in Q2 and 60-65 for the year, with licensed openings at 40-45; recent new units are performing at expectations.

• Guidance practices are shifting from quarterly to annual updates, with 2027 targets under review and potential updates later this year.

Strategic priorities and operational focus

• Focus areas include optimizing new restaurant openings, driving comp growth through marketing, and achieving G&A leverage by 2027.

• Investments in supply chain and operations have professionalized the business, with a new procurement team and improved processes.

• Marketing has driven three consecutive quarters of traffic growth, with a balance between guest acquisition and premium product innovation.

• G&A leverage is expected through productivity gains, especially from AI-driven data integration and operational efficiencies.

Cost management and margin outlook

• Labor management has improved, with no plans to reduce staff further; COGS and OpEx are being optimized amid persistent beef inflation.

• Supply chain initiatives are designed for long-term sustainability, not just short-term cost savings.

• Restaurant operating margins are expected to remain strong, with ongoing efforts to balance cost pressures and maintain quality.