Shake Shack (SHAK) TD Cowen’s 8th Annual Future of the Consumer Conference summary

Guidance and leadership updates

• Reiterated Q2 and full-year 2024 guidance, consistent with prior earnings report.

• New CEO Rob Lynch is actively engaging with teams and visiting new locations to understand operations.

• Hiring a new COO is a top priority, with a focus on candidates experienced in large-scale, high-volume, fresh-cooked operations.

• Rob Lynch's industry experience is expected to help attract top talent and support scaling efforts.

Sales, marketing, and brand strategy

• 2024 same-store sales guidance projects low single-digit growth, with flat traffic expected.

• Increased marketing spend is driving brand awareness and new guest acquisition, especially in newer markets.

• Marketing budget remains below peers, but incremental investments are being made with a focus on ROI and brand differentiation.

• Premium positioning and higher-income customer base provide insulation from fast food value wars.

• Menu innovation and thoughtful messaging are key to maintaining guest engagement and frequency.

Digital, kiosks, and channel innovation

• Kiosks are now the largest and highest-margin sales channel, driving upsell and improved guest experience.

• Kiosk implementation has been successful across diverse locations, supporting visual merchandising and menu exploration.

• Digital offers, such as Free Fry Fridays and app exclusives, are used to drive frequency and app downloads.

• Continued investment in digital and technology is planned, with ambitions to expand capabilities despite a lean tech budget.