Shake Shack posts strong growth, accelerating physical expansion 

Shake Shack store
Shake Shack opened 13 new company-operated restaurants during the quarter. (Source: Shake Shack)

Shake Shack reported strong second-quarter results, with total revenue rising 12.6 per cent year over year to $356.5 million, as the fast-casual chain ramps up its domestic and international expansion.

The quarter included $343.2 million in sales from company-operated restaurants and $13.3 million in licensing revenue. Net income grew to $18.5 million, up from $10.4 million during the same period last year.

Same-Shack sales rose 1.8 per cent, driven mainly by pricing increases of about 3 per cent, though customer traffic declined roughly 1 per cent.

Shake Shack opened 13 company-operated restaurants during the quarter, including two drive-thru locations, along with nine new licensed units. The company plans to open 80 to 90 restaurants this year, including a record 45 to 50 company-owned locations.

“Over the past year, we’ve improved our operations and strengthened our unit economics through more efficient processes and applying best practices from larger, scaled organizations while staying true to the Shake Shack brand,” said CEO Rob Lynch. 

“We are committed to continuing to differentiate ourselves through a mix of operational, culinary, and marketing strategies to reinforce the significant value we offer.”

The company has introduced new limited-time menu items, including fried pickles and seasonal shakes, and expanded its marketing and loyalty efforts to drive guest frequency.

Shake Shack ended the quarter with 264 company-operated restaurants across 20 markets. It also signed two new licensing agreements to bring the brand to more US casinos and entered Central America for the first time with a location in Panama.

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