Fast casual restaurant chain Shake Shack has announced its CEO Randy Garutti will retire next year after more than two decades with the company.

Garutti will continue to lead the company as CEO and an executive board member until his successor is appointed. Shake Shack also plans to keep him as an advisor following his retirement to ensure a proper transition.

The firm has initiated an external search for the new chief executive with the help from consulting company Korn Ferry. 

“It has been my honor to lead the talented Shake Shack team from our humble beginnings as a hot dog cart in Madison Square Park in New York City to the public company we are today,” said Garutti.

“Our seasoned leadership team is exceptional and well-positioned to deliver on our ambitious plans. I have never been more optimistic about Shake Shack’s potential and am deeply committed to ensuring a seamless transition.”

Garutti added he will focus on his family as part of his upcoming plans.

Shake Shack is expecting to achieve total revenue of $1.08 billion for the year ended December 27, a 20 per cent increase from last year.

Since the original Shack opened in 2004, the company has expanded to over 500 locations across the US, as well as in London, Hong Kong, Shanghai, Singapore, Mexico City, Istanbul, Dubai, Tokyo, Seoul and more.