Shake Shack (SHAK) Q3 2024 earnings summary

Executive summary

• Total revenue for Q3 2024 rose 14.7% year-over-year to $316.9 million, driven by new Shack openings, higher menu prices, and strong digital sales.

• System-wide sales increased 12.8% to $495.1 million, with same-Shack sales up 4.4% and digital sales rising 25.4% to $104.3 million.

• Adjusted EBITDA grew 28% to $45.8 million (14.4% margin), while restaurant-level profit margin expanded to 21%, the highest Q3 margin since 2019.

• Net loss attributable to the company was $10.2 million to $11.1 million, mainly due to $26.4–$29.1 million in impairment and closure costs from nine underperforming Shack closures.

• Opened 17 new Shacks in Q3 (eight company-operated, nine licensed), bringing the system-wide total to 552, with plans to accelerate to 80–85 new units in 2025.

Financial highlights

• Shack sales grew 15.1% year-over-year to $304.9 million; licensing revenue increased 7.1% to $12.0 million.

• Restaurant-level profit was $64.2 million (21% of Shack sales), up from 20.4% last year.

• Adjusted EBITDA margin rose to 14.4% from 13.0% year-over-year; adjusted EBITDA reached $45.8 million.

• Adjusted pro forma net income was $11.2 million ($0.25 per share); GAAP net loss of $10.2–$11.1 million due to impairment charges.

• Cash and equivalents rose to $310.9 million, up $6.5 million sequentially and $18 million year to date.

Outlook and guidance

• Q4 revenue guidance: $322.6–$327 million, up 12.7%–14.2% year-over-year.

• Q4 same-Shack sales expected at 3%–4%, with restaurant-level profit margin of ~22%.

• Full-year 2024 revenue guidance: ~$1.25 billion, up ~15% year-over-year.

• Full-year Adjusted EBITDA guidance: $168–$170 million, up 27%–29% year-over-year.

• 2025 plans include 80–85 new Shacks (45 company-operated, 35–40 licensed), with continued margin and sales growth focus.