NY hamburger chain Shake Shack reported revenues up 37.4% to $91.3 million in the second quarter. However, same store sales declined 1.8%.
The company reported net income of $4.9 million.
Randy Garutti, Chief Executive Officer of Shake Shack, said, “The team posted another strong quarter of growth on both the top and bottom line, increasing total revenue over 37% and adjusted EBITDA over 36%. We added seven net new system-wide Shacks in both new and current markets, continuing the growth of our licensed business at home and abroad. Shacks outside of our comp base represented $24.5 million in increased revenue partially offset by a decline in same-Shack sales, but sequentially improved from last quarter. Even considering the same-Shack sales decline, coming from our small base of 37 Shacks, we’re reiterating our revenue growth targets for the year, our development schedule and the strength of our Shack-level operating profit. We’re incredibly excited about the recently announced agreement we executed to open Shake Shacks in Hong Kong and Macau, as we build on the strength of our Asian business with an eye towards China and further development through the region. We’re also proud of the technology, personalized marketing and menu innovation initiatives we’ve launched to date and, as we look to the future, we’re focused on investing in these key areas and the tremendous growth ahead of us.”
During the quarter, the Company opened four domestic company-operated Shacks, including the Company’s first Shack in Lexington, KY, as well as Shacks in Melville, NY, Chicago at the West Loop and Orlando at the Florida Mall. Additionally, the Company opened two domestic licensed Shacks, which included a Shack at the Minute Maid Park in Houston and LAX Airport, as well as two additional international licensed Shacks in South Korea.
For fiscal 2017, the company projects that Same-Shack sales will decrease between -2% and -3% (vs. flat to prior year), which includes 1.5% to 2% of menu price increases taken at the end of December 2016. The company projects total revenue for the year of $351 to $355 million.