On August 1, 2024, Shake Shack Inc (SHAK, Financial) released its 8-K filing for the second quarter of 2024. Shake Shack Inc is a roadside burger stand serving a classic American menu of premium burgers, hot dogs, crispy chicken, frozen custard, crinkle-cut fries, shakes, beer, wine, and more. The company's burgers are made with a whole-muscle blend of all-natural, hormone and antibiotic-free Angus beef, ground fresh daily, cooked to order, and served on a non-genetically modified organism (GMO) potato bun.
Performance Overview
Shake Shack Inc reported total revenue of $316.5 million for Q2 2024, surpassing the analyst estimate of $314.20 million. This marks a 16.4% increase compared to the same period in 2023. The company also reported earnings per share (EPS) of $0.23, which aligns with the adjusted pro forma EPS of $0.23, meeting the analyst estimate.
Key Financial Achievements
Shake Shack Inc's financial achievements for Q2 2024 include:
- System-wide sales of $483.7 million, up 13.5% versus 2023.
- Same-Shack sales increased by 4.0% compared to 2023.
- Operating income of $10.8 million, a significant rise from $4.7 million in 2023.
- Restaurant-level profit of $67.1 million, or 22.0% of Shack sales.
- Net income of $10.4 million, up from $7.2 million in 2023.
- Adjusted EBITDA of $47.2 million, a 27.4% increase from 2023.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Total Revenue | $316.5 million | $271.8 million |
| Shack Sales | $305.5 million | $261.8 million |
| Licensing Revenue | $11.0 million | $10.0 million |
| Operating Income | $10.8 million | $4.7 million |
| Net Income | $10.4 million | $7.2 million |
| Adjusted EBITDA | $47.2 million | $37.1 million |
Balance Sheet and Cash Flow
As of June 26, 2024, Shake Shack Inc reported total assets of $1.66 billion, up from $1.61 billion as of December 27, 2023. The company's cash and cash equivalents increased to $301.8 million from $224.7 million. Total liabilities stood at $1.18 billion, compared to $1.14 billion at the end of 2023.
Operational Highlights
During the quarter, Shake Shack Inc opened twelve new Company-operated Shacks, including three drive-thrus, and eleven new licensed Shacks. The company's focus on expanding its footprint and enhancing customer experience through new openings and drive-thru options is evident.
Analysis and Outlook
Shake Shack Inc's strong revenue growth and improved profit margins indicate robust operational performance. The increase in same-Shack sales and system-wide sales reflects the company's ability to attract and retain customers. However, the rising operating expenses and the competitive landscape in the restaurant industry pose challenges that the company needs to navigate carefully.
Overall, Shake Shack Inc's Q2 2024 earnings report showcases its resilience and growth potential in the fast-casual dining sector. Investors and stakeholders will be keenly watching the company's strategic initiatives and market performance in the coming quarters.
Explore the complete 8-K earnings release (here) from Shake Shack Inc for further details.
