- Total revenue of $316.9 million, up 14.7% versus 2023,
including $304.9 million of Shack sales and $12.0 million of
Licensing revenue.
- System-wide sales of $495.1 million, up 12.8% versus
2023.
- Same-Shack sales up 4.4% versus 2023.
- Operating loss of $18.0 million, inclusive of a $29.1
million charge for Impairments, loss on disposal of assets, and
Shack closures, versus operating income of $5.7 million in 2023.
- Restaurant-level profit(1) of $64.2 million, or 21.0% of
Shack sales.
- Net loss of $11.1 million, inclusive of a $29.1 million
charge for Impairments, loss on disposal of assets, and Shack
closures, versus net income of $8.1 million in 2023.
- Adjusted EBITDA(1) of $45.8 million, up 28.0% versus
2023.
- Net loss attributable to Shake Shack Inc. of $10.2
million, or loss of $0.26 per share, inclusive of a $29.1 million
charge for Impairments, loss on disposal of assets, and Shack
closures.
- Adjusted pro forma net income(1) of $11.2 million, or
earnings of $0.25 per fully exchanged and diluted share.
- Opened eight new Company-operated Shacks, including three
drive-thrus. Opened nine new licensed Shacks.
Shake Shack Inc. (“Shake Shack” or the “Company”) (NYSE:
SHAK) has posted its results for the third quarter of 2024 in a
Shareholder Letter in the Quarterly Results section of the
Company's Investor Relations website, which can be found here: Q3
2024 Shake Shack 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 November 06, 2024 by dialing (844)
512-2921 or for international callers by dialing (412) 317-6671;
the passcode is 13748716.
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 550 locations
system-wide, including over 350 in 33 U.S. States and the District
of Columbia, and 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 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.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(UNAUDITED)
(in thousands, except share and
per share amounts)
September 25
2024
December 27
2023
ASSETS
Current assets:
Cash and cash equivalents
$
310,865
$
224,653
Marketable securities
—
68,561
Accounts receivable, net
16,743
16,847
Inventories
5,146
5,404
Prepaid expenses and other current
assets
21,262
18,967
Total current assets
354,016
334,432
Property and equipment, net of accumulated
depreciation of $442,383 and $376,760, respectively
544,902
530,995
Operating lease assets
419,586
398,296
Deferred income taxes, net
344,479
326,208
Other assets
12,436
15,926
TOTAL ASSETS
$
1,675,419
$
1,605,857
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable
$
15,765
$
22,273
Accrued expenses
65,822
54,742
Accrued wages and related liabilities
21,961
20,945
Operating lease liabilities, current
55,227
49,004
Other current liabilities
17,058
17,103
Total current liabilities
175,833
164,067
Long-term debt
246,422
245,636
Long-term operating lease liabilities
499,228
464,533
Liabilities under tax receivable
agreement, net of current portion
247,824
235,613
Other long-term liabilities
27,057
26,638
Total liabilities
1,196,364
1,136,487
Commitments and contingencies
Stockholders' equity:
Preferred stock, no par value—10,000,000
shares authorized; none issued and outstanding as of September 25,
2024 and December 27, 2023.
—
—
Class A common stock, $0.001 par
value—200,000,000 shares authorized; 40,027,089 and
39,474,315 shares issued and outstanding
as of September 25, 2024 and December 27, 2023, respectively.
40
39
Class B common stock, $0.001 par
value—35,000,000 shares authorized; 2,456,158 and
2,834,513 shares issued and outstanding as
of September 25, 2024 and December 27, 2023, respectively.
2
3
Additional paid-in capital
437,788
426,601
Retained earnings
18,274
16,777
Accumulated other comprehensive loss
(2
)
(3
)
Total stockholders' equity attributable to
Shake Shack Inc.
456,102
443,417
Non-controlling interests
22,953
25,953
Total equity
479,055
469,370
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY
$
1,675,419
$
1,605,857
SHAKE SHACK INC.
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME (LOSS)
(UNAUDITED)
(in thousands, except per share
amounts)
Thirteen Weeks Ended
Thirty-Nine Weeks
Ended
September 25
2024
September 27
2023
September 25
2024
September 27
2023
Shack sales
$
304,897
96.2
%
$
264,980
95.9
%
$
890,929
96.4
%
$
771,044
96.2
%
Licensing revenue
12,027
3.8
%
11,227
4.1
%
32,995
3.6
%
30,246
3.8
%
TOTAL REVENUE
316,924
100.0
%
276,207
100.0
%
923,924
100.0
%
801,290
100.0
%
Shack-level operating expenses(1):
Food and paper costs
86,056
28.2
%
77,180
29.1
%
251,362
28.2
%
224,752
29.1
%
Labor and related expenses
85,523
28.0
%
76,233
28.8
%
253,646
28.5
%
225,655
29.3
%
Other operating expenses
45,564
14.9
%
37,307
14.1
%
131,373
14.7
%
108,352
14.1
%
Occupancy and related expenses
23,608
7.7
%
20,300
7.7
%
69,022
7.7
%
58,684
7.6
%
General and administrative expenses
35,691
11.3
%
30,939
11.2
%
107,948
11.7
%
93,726
11.7
%
Depreciation and amortization expense
25,722
8.1
%
23,130
8.4
%
76,659
8.3
%
66,704
8.3
%
Pre-opening costs
3,662
1.2
%
4,969
1.8
%
10,429
1.1
%
14,103
1.8
%
Impairments, loss on disposal of assets,
and Shack closures
29,086
9.2
%
492
0.2
%
30,657
3.3
%
2,098
0.3
%
TOTAL EXPENSES
334,912
105.7
%
270,550
98.0
%
931,096
100.8
%
794,074
99.1
%
INCOME (LOSS) FROM OPERATIONS
(17,988
)
(5.7
)%
5,657
2.0
%
(7,172
)
(0.8
)%
7,216
0.9
%
Other income, net
3,504
1.1
%
3,441
1.2
%
10,010
1.1
%
9,505
1.2
%
Interest expense
(498
)
(0.2
)%
(433
)
(0.2
)%
(1,533
)
(0.2
)%
(1,241
)
(0.2
)%
INCOME (LOSS) BEFORE INCOME
TAXES
(14,982
)
(4.7
)%
8,665
3.1
%
1,305
0.1
%
15,480
1.9
%
Income tax expense (benefit)
(3,873
)
(1.2
)%
529
0.2
%
(182
)
—
%
1,743
0.2
%
NET INCOME (LOSS)
(11,109
)
(3.5
)%
8,136
2.9
%
1,487
0.2
%
13,737
1.7
%
Less: Net income (loss) attributable to
non-controlling interests
(898
)
(0.3
)%
509
0.2
%
(10
)
—
%
696
0.1
%
NET INCOME (LOSS) ATTRIBUTABLE TO SHAKE
SHACK INC.
$
(10,211
)
(3.2
)%
$
7,627
2.8
%
$
1,497
0.2
%
$
13,041
1.6
%
Earnings (Loss) per share of Class A
common stock:
Basic
$
(0.26
)
$
0.19
$
0.04
$
0.33
Diluted
$
(0.26
)
$
0.19
$
0.03
$
0.31
Weighted-average shares of Class A common
stock outstanding:
Basic
40,010
39,460
39,758
39,402
Diluted
40,010
43,978
44,163
43,884
_________________
(1)
As a percentage of Shack sales.
SHAKE SHACK INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)
Thirty-Nine Weeks
Ended
September 25
2024
September 27
2023
OPERATING ACTIVITIES
Net income (including amounts attributable
to non-controlling interests)
$
1,487
$
13,737
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization expense
76,659
66,704
Amortization of debt issuance costs
786
786
Amortization of cloud computing assets
1,577
1,320
Non-cash operating lease cost
57,484
49,775
Equity-based compensation
11,539
11,220
Deferred income taxes
(4,122
)
7,092
Non-cash interest
(123
)
94
Gain on sale of equity securities
—
(81
)
Net amortization of discount on
held-to-maturity securities
(440
)
(939
)
Impairments, loss on disposal of assets,
and Shack closures
28,703
2,098
Changes in operating assets and
liabilities:
Accounts receivable
104
(12
)
Inventories
258
(424
)
Prepaid expenses and other current
assets
(3,781
)
(3,056
)
Other assets
(2,489
)
(4,750
)
Accounts payable
(3,907
)
(5,064
)
Accrued expenses
10,123
(6,424
)
Accrued wages and related liabilities
1,016
555
Other current liabilities
(1,385
)
(2,757
)
Operating lease liabilities
(49,159
)
(41,725
)
Other long-term liabilities
1,742
2,442
NET CASH PROVIDED BY OPERATING
ACTIVITIES
126,072
90,591
INVESTING ACTIVITIES
Purchases of property and equipment
(100,801
)
(113,033
)
Purchases of held-to-maturity
securities
—
(94,019
)
Maturities of held-to-maturity marketable
securities
69,420
—
Purchases of equity securities
—
(690
)
Sales of equity securities
—
81,478
NET CASH USED IN INVESTING
ACTIVITIES
(31,381
)
(126,264
)
FINANCING ACTIVITIES
Payments on principal of finance
leases
(2,921
)
(2,383
)
Distributions paid to non-controlling
interest holders
(208
)
(131
)
Net proceeds from stock option
exercises
795
631
Employee withholding taxes related to net
settled equity awards
(6,146
)
(2,942
)
NET CASH USED IN FINANCING
ACTIVITIES
(8,480
)
(4,825
)
Effect of exchange rate changes on cash
and cash equivalents
1
(3
)
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS
86,212
(40,501
)
CASH AND CASH EQUIVALENTS AT BEGINNING
OF PERIOD
224,653
230,521
CASH AND CASH EQUIVALENTS AT END OF
PERIOD
$
310,865
$
190,020
SHAKE SHACK INC. NON-GAAP FINANCIAL
MEASURES (UNAUDITED)
To supplement the condensed 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
Loss from Operations, the most directly comparable GAAP financial
measure, is set forth below.
Thirteen Weeks Ended
Thirty-Nine Weeks
Ended
(dollar amounts in thousands)
September 25
2024
September 27
2023
September 25
2024
September 27
2023
Income (loss) from operations
$
(17,988
)
$
5,657
$
(7,172
)
$
7,216
Less:
Licensing revenue
12,027
11,227
32,995
30,246
Add:
General and administrative expenses
35,691
30,939
107,948
93,726
Depreciation and amortization expense
25,722
23,130
76,659
66,704
Pre-opening costs
3,662
4,969
10,429
14,103
Impairments, loss on disposal of assets,
and Shack closures
29,086
492
30,657
2,098
Adjustment:
Employee benefit charges(1)
8
—
453
—
Restaurant-level profit
$
64,154
$
53,960
$
185,979
$
153,601
Total revenue
$
316,924
$
276,207
$
923,924
$
801,290
Less: Licensing revenue
12,027
11,227
32,995
30,246
Shack sales
$
304,897
$
264,980
$
890,929
$
771,044
Restaurant-level profit margin(2)
21.0
%
20.4
%
20.9
%
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 (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 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
(loss), the most directly comparable GAAP measure, is set forth
below.
Thirteen Weeks Ended
Thirty-Nine Weeks
Ended
(dollar amounts in thousands)
September 25
2024
September 27
2023
September 25
2024
September 27
2023
Net income (loss)
$
(11,109
)
$
8,136
$
1,487
$
13,737
Depreciation and amortization expense
25,722
23,130
76,659
66,704
Interest expense, net
442
(845
)
810
(164
)
Income tax expense (benefit)
(3,873
)
529
(182
)
1,743
EBITDA
$
11,182
$
30,950
$
78,774
$
82,020
Equity-based compensation
4,158
3,691
11,539
11,425
Amortization of cloud-based software
implementation costs
529
440
1,577
1,320
Impairments, loss on disposal of assets,
and Shack closures
29,086
492
30,657
2,098
Restatement costs(1)
1
—
1,600
—
CEO transition costs
53
—
641
—
Employee benefit charges(2)
8
—
453
—
Legal settlements(3)
—
—
—
1,004
Severance
—
211
—
211
Other(4)
774
—
3,644
2,321
Adjusted EBITDA
$
45,791
$
35,784
$
128,885
$
100,399
Adjusted EBITDA margin(5)
14.4
%
13.0
%
13.9
%
12.5
%
(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 $316.9 million and $923.9 million for the
thirteen and thirty-nine weeks ended September 25, 2024,
respectively, and $276.2 million and $801.3 million for the
thirteen and thirty-nine weeks ended September 27, 2023,
respectively.
SHAKE SHACK INC. NON-GAAP FINANCIAL
MEASURES (UNAUDITED)
Adjusted Pro Forma Net Income and Adjusted Pro Forma Earnings
Per Fully Exchanged and Diluted Share
Adjusted pro forma net income 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 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
(loss) 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 (loss) 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 attributable to the
non-controlling interest holders and therefore does not provide a
complete understanding of the Net income (loss) 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
(loss) 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
Thirty-Nine Weeks
Ended
(in thousands, except per share
amounts)
September 25
2024
September 27
2023
September 25
2024
September 27
2023
Numerator:
Net income (loss) attributable to Shake
Shack Inc.
$
(10,211
)
$
7,627
$
1,497
$
13,041
Adjustments:
Reallocation of Net income (loss)
attributable to non-controlling interests from the assumed exchange
of LLC Interests(1)
(898
)
509
(10
)
696
Impairment charge and Shack
closures(2)
28,157
—
28,157
—
Restatement costs(3)
1
—
1,600
—
CEO transition costs
53
—
641
—
Employee benefit charges(4)
8
—
453
—
Legal settlements
—
—
—
1,004
Severance
—
211
—
211
Other(5)
774
—
3,644
2,321
Tax impact of above adjustments(6)
(6,725
)
(810
)
(7,054
)
(2,146
)
Adjusted pro forma net income
$
11,159
$
7,537
$
28,928
$
15,127
Denominator:
Weighted average shares of Class A common
stock outstanding—diluted
40,010
43,978
44,163
43,884
Adjustments:
Assumed exchange of LLC Interests for
shares of Class A common stock(1)
2,466
—
—
—
Dilutive effect of equity awards
278
—
—
—
Dilutive effect of convertible notes
1,467
—
—
—
Adjusted pro forma fully exchanged
weighted average shares of Class A common stock
outstanding—diluted
44,221
43,978
44,163
43,884
Adjusted pro forma earnings per fully
exchanged share—diluted
$
0.25
$
0.17
$
0.66
$
0.34
Thirteen Weeks Ended
Thirty-Nine Weeks
Ended
September 25
2024
September 27
2023
September 25
2024
September 27
2023
Earnings (loss) per share of Class A
common stock—diluted
$
(0.26
)
$
0.19
$
0.03
$
0.31
Non-GAAP adjustments(7)
0.52
(0.02
)
0.63
0.03
Dilutive effect of convertible notes
(0.01
)
—
—
—
Adjusted pro forma earnings per fully
exchanged share—diluted
$
0.25
$
0.17
$
0.66
$
0.34
(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 Shack
closures during fiscal 2024.
(3)
Expenses incurred related to the
restatement of prior periods in the 2023 Form 10-K.
(4)
Expenses related to California healthcare
charges for fiscal 2020 through 2023 which do not represent fiscal
2024 Labor and related expenses.
(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 20.4% and
19.2% for the thirteen and thirty-nine weeks ended September 25,
2024, respectively, and 15.1% and 20.5% for the thirteen and
thirty-nine weeks ended September 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/20241029581396/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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