Q2 2024 Shake Shack Inc Earnings Call Transcript
Key Points
- Shake Shack Inc (SHAK) reported a strong second quarter with a 4% increase in same-shack sales and a 100 basis point expansion in restaurant-level profit margins.
- The company achieved a 27% growth in adjusted EBITDA, marking the strongest quarterly results since Q3 2019.
- Shake Shack Inc (SHAK) opened 12 new company-operated Shacks in Q2, exceeding expectations and continuing development momentum.
- The company celebrated its 20th anniversary and reported that it has built a strong brand with over 550 Shacks worldwide.
- Shake Shack Inc (SHAK) reported record achievements in total revenue, restaurant-level profit, and adjusted EBITDA, with a 16.4% year-over-year revenue growth to $315.5 million.
- Traffic was down 80 basis points year-over-year, indicating a slight decline in customer visits.
- The company faces continued macroeconomic pressures in Mainland China and certain EMEA regions, which are expected to persist.
- Shake Shack Inc (SHAK) reported a low single-digit sales headwind from foreign exchange in its license business.
- The company is still working on optimizing its drive-thru format, with current drive-thru times being significantly longer than desired.
- Despite improvements, Shake Shack Inc (SHAK) still faces challenges in improving speed of service and throughput, which are critical for driving comps and customer satisfaction.
Greetings. Welcome to Shake Shack's Second Quarter 2024 Earnings Call. (Operator Instructions) Please note, this conference is being recorded.
I will now turn the conference over to Michael Oriolo, Vice President, FP&A and Investor Relations. Thank you. You may begin.
Thank you, and good morning, everyone. Joining me for Shake Shack's conference call is our CEO, Rob Lynch; and CFO, Kate Fogertey.
During today's call, we will discuss non-GAAP financial measures, which we believe can be useful in evaluating our performance. The presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with GAAP. Reconciliations to comparable GAAP measures are available in our earnings release and the financial details section of our shareholder letter.
Some of today's statements may be forward-looking, and actual results may differ materially due to a number of risks and uncertainties,
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