Financial Highlights for the Fourth Quarter 2023:
- Total revenue of $286.2 million, up 20.0% versus 2022,
including $275.8 million of Shack sales and $10.5 million of
Licensing revenue.
- System-wide sales of $442.1 million, up 21.4% versus
2022.
- Same-Shack sales up 2.8% versus 2022.
- Operating loss of $1.3 million.
- Shack-level operating profit(1) of $54.6 million, or
19.8% of Shack sales.
- Net income of $6.8 million.
- Adjusted EBITDA(1) of $31.4 million.
- Net income attributable to Shake Shack Inc. of $6.8
million, or earnings of $0.15 per diluted share.
- Adjusted pro forma net income(1) of $1.0 million, or
earnings of $0.02 per fully exchanged and diluted share.
- Opened 15 new domestic Company-operated Shacks. Opened 9 new
licensed Shacks, including locations in Mexico and Thailand.
Financial Highlights for the Fiscal Year 2023:
- Total revenue of $1,087.5 million, up 20.8% versus 2022,
including $1,046.8 million of Shack sales and $40.7 million
of Licensing revenue.
- System-wide sales of $1,702.1 million, up 23.5% versus
2022.
- Same-Shack sales up 4.4% versus 2022.
- Operating income of $5.9 million.
- Shack-level operating profit(1) of $208.2 million, or
19.9% of Shack sales.
- Net income of $20.5 million.
- Adjusted EBITDA(1) of $131.8 million.
- Net income attributable to Shake Shack Inc. of $19.8
million, or earnings of $0.47 per diluted share.
- Adjusted pro forma net income(1) of $16.2 million, or
earnings of $0.37 per fully exchanged and diluted share.
- Opened 41 new domestic Company-operated Shacks. Opened 44 new
licensed Shacks, including locations in Thailand and Bahamas.
Shake Shack Inc. (“Shake Shack” or the “Company”) (NYSE:
SHAK) has posted its results for the fourth quarter and the fiscal
year ended December 27, 2023 in a Shareholder Letter in the
Quarterly Results section of the Company's Investor Relations
website, which can be found here: Q4 2023 Shareholder Letter.
Shake Shack will host a conference call at 8:00 a.m. ET. Hosting
the call will be Randy Garutti, Chief Executive Officer, and
Katherine Fogertey, Chief Financial Officer. The conference call
can be accessed live over the phone by dialing (877) 407-0792, or
for international callers by dialing (201) 689-8263. A replay of
the call will be available until February 22, 2024 by dialing (844)
512-2921 or for international callers by dialing (412) 317-6671;
the passcode is 13743295.
The live audio webcast of the conference call will be accessible
in the Events & Presentations section of the Company's Investor
Relations website at investor.shakeshack.com. An archived replay of
the webcast will also be available shortly after the live event has
concluded.
As previously announced, the Company will restate its financial
statements for the fiscal years 2022 and 2021. The Company
anticipates filing its Annual Report on Form 10-K for fiscal 2023
on a timely basis prior to the deadline. The unaudited financial
statements set forth below for fiscal 2023 and 2022 give effect to
the previously announced adjustments to the Company’s accounting
for state tax depreciation.
(1) Shack-level operating profit, Adjusted EBITDA and Adjusted
pro forma net income (loss) are non-GAAP measures. A reconciliation
to the most directly comparable financial measures presented in
accordance with GAAP is set forth in the schedules accompanying
this release. See “Non-GAAP Financial Measures” below.
About Shake Shack
Shake Shack serves elevated versions of American classics using
only the best ingredients. It’s known for its delicious
made-to-order Angus beef burgers, crispy chicken, hand-spun
milkshakes, house-made lemonades, beer, wine, and more. With its
high-quality food at a great value, warm hospitality, and a
commitment to crafting uplifting experiences, Shake Shack quickly
became a cult-brand with widespread appeal. Shake Shack’s purpose
is to Stand For Something Good®, from its premium ingredients and
employee development, to its inspiring designs and deep community
investment. Since the original Shack opened in 2004 in NYC’s
Madison Square Park, the Company has expanded to over 510 locations
system-wide, including over 330 in 33 U.S. States and the District
of Columbia, and over 180 international locations across London,
Hong Kong, Shanghai, Singapore, Mexico City, Istanbul, Dubai,
Tokyo, Seoul and more.
Skip the line with the Shack App, a mobile ordering app
that lets you save time by ordering ahead! Guests can select their
location, pick their food, choose a pickup time and their meal will
be cooked-to-order and timed to arrival. Available on iOS and
Android.
Definitions
The following definitions apply to these terms as used in this
release:
"Shack sales" is defined as the aggregate sales of food,
beverages, gift card breakage income and Shake Shack branded
merchandise at domestic Company-operated Shacks and excludes sales
from licensed Shacks.
“System-wide sales” is an operating measure and consists of
sales from the Company's domestic Company-operated Shacks, domestic
licensed Shacks and international licensed Shacks. The Company does
not recognize the sales from licensed Shacks as revenue. Of these
amounts, revenue is limited to licensing revenue based on a
percentage of sales from domestic and international licensed
Shacks, as well as certain up-front fees, such as territory fees
and opening fees.
"Same-Shack sales" represents Shack sales for the comparable
Shack base, which is defined as the number of domestic
Company-operated Shacks open for 24 full fiscal months or longer.
For consecutive days that Shacks were temporarily closed, the
comparative period was also adjusted.
"Shack-level operating profit," a non-GAAP measure, is defined
as Shack sales less Shack-level operating expenses including Food
and paper costs, Labor and related expenses, Other operating
expenses and Occupancy and related expenses.
"Shack-level operating profit margin," a non-GAAP measure, is
defined as Shack sales less Shack-level operating expenses
including Food and paper costs, Labor and related expenses, Other
operating expenses and Occupancy and related expenses as a
percentage of Shack sales.
“EBITDA,” a non-GAAP measure, is defined as Net income (loss)
before interest expense (net of interest income), Income tax
expense (benefit), and Depreciation and amortization expense.
“Adjusted EBITDA,” a non-GAAP measure, is defined as EBITDA (as
defined above), excluding equity-based compensation expense,
deferred lease costs, Impairment and loss on disposal of assets,
amortization of cloud-based software implementation costs, as well
as certain non-recurring items that the Company does not believe
directly reflect its core operations and may not be indicative of
the Company's recurring business operations.
"Adjusted pro forma net income," a non-GAAP measure, represents
Net income (loss) attributable to Shake Shack Inc. assuming the
full exchange of all outstanding SSE Holdings, LLC membership
interests ("LLC Interests") for shares of Class A common stock,
adjusted for certain non-recurring and other items that the Company
does not believe directly reflect its core operations and may not
be indicative of the Company's recurring business operations.
SHAKE SHACK INC.
CONSOLIDATED BALANCE
SHEETS
(UNAUDITED)
(in thousands, except share and
per share amounts)
December 27
2023
December 28
2022**
ASSETS
Current assets
Cash and cash equivalents
$
224,653
$
230,521
Marketable securities
68,561
80,707
Accounts receivable, net
16,847
13,877
Inventories
5,404
4,184
Prepaid expenses and other current
assets
18,967
14,699
Total current assets
334,432
343,988
Property and equipment, net of accumulated
depreciation of $376,760 and $290,362, respectively
530,995
467,031
Operating lease assets
398,595
367,488
Deferred income taxes, net
325,840
317,719
Other assets
15,926
15,817
TOTAL ASSETS
$
1,605,788
$
1,512,043
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities
Accounts payable
$
22,273
$
20,407
Accrued expenses
54,737
47,945
Accrued wages and related liabilities
20,945
17,576
Operating lease liabilities, current
49,004
42,238
Other current liabilities
17,103
19,552
Total current liabilities
164,062
147,718
Long-term debt
245,636
244,589
Long-term operating lease liabilities
464,832
427,227
Liabilities under tax receivable
agreement, net of current portion
235,613
234,893
Other long-term liabilities
26,638
20,687
Total liabilities
1,136,781
1,075,114
Commitments and contingencies
Stockholders' equity:
Preferred stock, no par value—10,000,000
shares authorized; none issued and outstanding as of December 27,
2023 and December 28, 2022.
—
—
Class A common stock, $0.001 par
value—200,000,000 shares authorized; 39,474,315 and 39,284,998
shares issued and outstanding as of December 27, 2023 and December
28, 2022, respectively.
39
39
Class B common stock, $0.001 par
value—35,000,000 shares authorized; 2,834,513 and 2,869,513 shares
issued and outstanding as of December 27, 2023 and December 28,
2022, respectively.
3
3
Additional paid-in capital
426,602
415,649
Retained earnings (accumulated
deficit)
16,413
(3,394
)
Accumulated other comprehensive loss
(3
)
—
Total stockholders' equity attributable to
Shake Shack Inc.
443,054
412,297
Non-controlling interests
25,953
24,632
Total equity
469,007
436,929
TOTAL LIABILITIES AND MEMBERS'
EQUITY
$
1,605,788
$
1,512,043
**As previously disclosed, in connection with the preparation of
the financial statements for the fiscal year ended December 27,
2023, management identified an error with the accounting for the
deferred tax asset associated with the investment in SSE Holdings,
LLC. The following adjustments have been made to the financial
information for fiscal 2022: a cumulative adjustment to fiscal 2022
opening retained earnings of approximately $14.2 million, a
decrease in income tax expense of approximately $3.0 million for
the thirteen and fifty-two weeks ended December 28, 2022 and an
increase in the fiscal 2022 deferred tax asset balance of
approximately $17.2 million.
SHAKE SHACK INC.
CONSOLIDATED STATEMENTS OF
INCOME (LOSS)
(UNAUDITED)
(in thousands, except per share
amounts)
Thirteen Weeks Ended
Fifty-Two Weeks Ended
December 27
2023
December 28
2022**
December 27
2023
December 28
2022**
Shack sales
$
275,775
96.3
%
$
229,924
96.4
%
$
1,046,819
96.3
%
$
869,270
96.5
%
Licensing revenue
10,468
3.7
%
8,605
3.6
%
40,714
3.7
%
31,216
3.5
%
TOTAL REVENUE
286,243
100.0
%
238,529
100.0
%
1,087,533
100.0
%
900,486
100.0
%
Shack-level operating expenses(1):
Food and paper costs
80,289
29.1
%
67,939
29.5
%
305,041
29.1
%
261,584
30.1
%
Labor and related expenses
78,599
28.5
%
66,404
28.9
%
304,254
29.1
%
257,358
29.6
%
Other operating expenses(2)
41,097
14.9
%
33,648
14.6
%
149,449
14.3
%
129,650
14.9
%
Occupancy and related expenses
21,162
7.7
%
18,238
7.9
%
79,846
7.6
%
68,508
7.9
%
General and administrative expenses(2)
35,816
12.5
%
32,205
13.5
%
129,542
11.9
%
120,009
13.3
%
Depreciation and amortization expense
24,538
8.6
%
19,207
8.1
%
91,242
8.4
%
72,796
8.1
%
Pre-opening costs
5,128
1.8
%
6,474
2.7
%
19,231
1.8
%
15,050
1.7
%
Impairment and loss on disposal of
assets
909
0.3
%
728
0.3
%
3,007
0.3
%
2,425
0.3
%
TOTAL EXPENSES
287,538
100.5
%
244,843
102.6
%
1,081,612
99.5
%
927,380
103.0
%
INCOME (LOSS) FROM OPERATIONS
(1,295
)
(0.5
)%
(6,314
)
(2.6
)%
5,921
0.5
%
(26,894
)
(3.0
)%
Other income, net
3,271
1.1
%
2,396
1.0
%
12,776
1.2
%
4,127
0.5
%
Interest expense
(476
)
(0.2
)%
(373
)
(0.2
)%
(1,717
)
(0.2
)%
(1,518
)
(0.2
)%
INCOME (LOSS) BEFORE INCOME
TAXES
1,500
0.5
%
(4,291
)
(1.8
)%
16,980
1.6
%
(24,285
)
(2.7
)%
Income tax expense (benefit)
(5,296
)
(1.9
)%
3,825
1.6
%
(3,553
)
(0.3
)%
(1,273
)
(0.1
)%
NET INCOME (LOSS)
6,796
2.4
%
(8,116
)
(3.4
)%
20,533
1.9
%
(23,012
)
(2.6
)%
Less: Net income (loss) attributable to
non-controlling interests
30
—
%
(354
)
(0.1
)%
726
0.1
%
(1,876
)
(0.2
)%
NET INCOME (LOSS) ATTRIBUTABLE TO SHAKE
SHACK INC.
$
6,766
2.4
%
$
(7,762
)
(3.3
)%
$
19,807
1.8
%
$
(21,136
)
(2.3
)%
Earnings (loss) per share of Class A
common stock:
Basic
$
0.17
$
(0.20
)
$
0.50
$
(0.54
)
Diluted
$
0.15
$
(0.20
)
$
0.47
$
(0.54
)
Weighted-average shares of Class A common
stock outstanding:
Basic
39,470
39,283
39,419
39,237
Diluted
43,944
39,283
43,899
39,237
(1) As a percentage of Shack sales.
(2) The Company has elected to reclassify certain marketing
expenses from Other operating expenses to General and
administrative expenses for the thirteen and fifty-two weeks ended
December 27, 2023. The prior periods have been updated to conform
with the current year presentation. The reclassification does not
have a material impact on our results.
**As previously disclosed, in connection with the preparation of
the financial statements for the fiscal year ended December 27,
2023, management identified an error with the accounting for the
deferred tax asset associated with the investment in SSE Holdings,
LLC. The following adjustments have been made to the financial
information for fiscal 2022: a cumulative adjustment to fiscal 2022
opening retained earnings of approximately $14.2 million, a
decrease in income tax expense of approximately $3.0 million for
the thirteen and fifty-two weeks ended December 28, 2022 and an
increase in the fiscal 2022 deferred tax asset balance of
approximately $17.2 million.
SHAKE SHACK INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(UNAUDITED)
(in thousands)
Fifty-Two Weeks Ended
December 27
2023
December 28
2022**
OPERATING ACTIVITIES
Net income (loss) (including amounts
attributable to non-controlling interests)
$
20,533
$
(23,012
)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation and amortization expense
91,242
72,796
Amortization of debt issuance costs
1,047
1,047
Amortization of cloud computing asset
1,798
1,500
Non-cash operating lease cost
67,781
58,801
Equity-based compensation
14,888
13,326
Deferred income taxes
(8,613
)
(6,312
)
Non-cash interest expense
116
218
Gain on sale of marketable securities
(81
)
—
Net amortization of discount on
held-to-maturity securities
(1,620
)
—
Impairment and loss on disposal of
assets
3,007
2,425
Unrealized loss on equity securities
—
158
Changes in operating assets and
liabilities:
Accounts receivable
(2,970
)
9,139
Inventories
(1,220
)
(334
)
Prepaid expenses and other current
assets
(2,253
)
(2,473
)
Other assets
(6,307
)
(8,065
)
Accounts payable
687
3,541
Accrued expenses
9,508
4,707
Accrued wages and related liabilities
3,328
2,859
Other current liabilities
(2,809
)
8,541
Operating lease liabilities
(58,214
)
(61,364
)
Other long-term liabilities
2,291
(756
)
NET CASH PROVIDED BY OPERATING
ACTIVITIES
132,139
76,742
INVESTING ACTIVITIES
Purchases of property and equipment
(146,167
)
(142,559
)
Purchases of held-to-maturity
securities
(94,019
)
—
Maturities of held-to-maturity
securities
27,078
—
Purchases of equity securities
(690
)
(865
)
Sales of equity securities
81,478
—
NET CASH USED IN INVESTING
ACTIVITIES
(132,320
)
(143,424
)
FINANCING ACTIVITIES
Payments on principal of finance
leases
(3,272
)
(2,974
)
Distributions paid to non-controlling
interest holders
(162
)
(410
)
Net proceeds from stock option
exercises
744
424
Employee withholding taxes related to net
settled equity awards
(2,994
)
(2,242
)
NET CASH USED IN FINANCING
ACTIVITIES
(5,684
)
(5,202
)
Effect of exchange rate changes on cash
and cash equivalents
(3
)
(1
)
DECREASE IN CASH AND CASH
EQUIVALENTS
(5,868
)
(71,885
)
CASH AND CASH EQUIVALENTS AT BEGINNING
OF PERIOD
230,521
302,406
CASH AND CASH EQUIVALENTS AT END OF
PERIOD
$
224,653
$
230,521
**As previously disclosed, in connection with the preparation of
the financial statements for the fiscal year ended December 27,
2023, management identified an error with the accounting for the
deferred tax asset associated with the investment in SSE Holdings,
LLC. The following adjustments have been made to the financial
information for fiscal 2022: a cumulative adjustment to fiscal 2022
opening retained earnings of approximately $14.2 million, a
decrease in income tax expense of approximately $3.0 million for
the thirteen and fifty-two weeks ended December 28, 2022 and an
increase in the fiscal 2022 deferred tax asset balance of
approximately $17.2 million.
SHAKE SHACK INC.
NON-GAAP FINANCIAL MEASURES
(UNAUDITED)
To supplement the Consolidated Financial Statements, which are
prepared and presented in accordance with accounting principles
generally accepted in the United States of America ("GAAP"), the
Company uses the following non-GAAP financial measures: Shack-level
operating profit, Shack-level operating profit margin, EBITDA,
adjusted EBITDA, adjusted EBITDA margin, adjusted pro forma net
income (loss) and adjusted pro forma earnings (loss) per fully
exchanged and diluted share (collectively the "non-GAAP financial
measures").
Shack-Level Operating Profit
Shack-level operating profit, also referred to as restaurant
profit, is defined as Shack sales less Shack-level operating
expenses which include Food and paper costs, Labor and related
expenses, Other operating expenses and Occupancy and related
expenses.
How This Measure Is Useful
When used in conjunction with GAAP financial measures,
Shack-level operating profit and Shack-level operating profit
margin are supplemental measures of operating performance that the
Company believes are useful measures to evaluate the performance
and profitability of its Shacks. Additionally, Shack-level
operating profit and Shack-level operating profit margin are key
metrics used internally by management to develop internal budgets
and forecasts, as well as assess the performance of its Shacks
relative to budget and against prior periods. It is also used to
evaluate team member compensation as it serves as a metric in
certain performance-based team member bonus arrangements. The
Company believes presentation of Shack-level operating profit and
Shack-level operating profit margin provides investors with a
supplemental view of its operating performance that can provide
meaningful insights to the underlying operating performance of the
Shacks, as these measures depict the operating results that are
directly impacted by the Shacks and exclude items that may not be
indicative of, or are unrelated to, the ongoing operations of the
Shacks. It may also assist investors to evaluate the Company's
performance relative to peers of various sizes and maturities and
provides greater transparency with respect to how management
evaluates the business, as well as the financial and operational
decision-making.
Limitations of the Usefulness of this Measure
Shack-level operating profit and Shack-level operating profit
margin may differ from similarly titled measures used by other
companies due to different methods of calculation. Presentation of
Shack-level operating profit and Shack-level operating profit
margin is not intended to be considered in isolation or as a
substitute for, or superior to, the financial information prepared
and presented in accordance with GAAP. Shack-level operating profit
excludes certain costs, such as General and administrative expenses
and Pre-opening costs, which are considered normal, recurring cash
operating expenses and are essential to support the operation and
development of the Company's Shacks. Therefore, this measure may
not provide a complete understanding of the Company's operating
results as a whole and Shack-level operating profit and Shack-level
operating profit margin should be reviewed in conjunction with the
Company's GAAP financial results. A reconciliation of Shack-level
operating profit to Income (loss) from operations, the most
directly comparable GAAP financial measure, is as follows.
Thirteen Weeks Ended
Fifty-Two Weeks Ended
(dollar amounts in thousands)
December 27
2023
December 28
2022
December 27
2023
December 28
2022
Income (loss) from operations
$
(1,295
)
$
(6,314
)
$
5,921
$
(26,894
)
Less:
Licensing revenue
10,468
8,605
40,714
31,216
Add:
General and administrative expenses(1)
35,816
32,205
129,542
120,009
Depreciation and amortization expense
24,538
19,207
91,242
72,796
Pre-opening costs
5,128
6,474
19,231
15,050
Impairment and loss on disposal of
assets(2)
909
728
3,007
2,425
Shack-level operating profit
$
54,628
$
43,695
$
208,229
$
152,170
Total revenue
$
286,243
$
238,529
$
1,087,533
$
900,486
Less: Licensing revenue
10,468
8,605
40,714
31,216
Shack sales
$
275,775
$
229,924
$
1,046,819
$
869,270
Shack-level operating profit
margin(3,4)
19.8
%
19.0
%
19.9
%
17.5
%
(1) Certain marketing expenses have been reclassified from Other
operating expenses to General and administrative expenses in the
prior year to conform with the current year presentation. The
reclassification does not have a material impact on our
results.
(2) For the thirteen and fifty-two weeks ended December 28,
2022, this amount includes a non-cash impairment charge of $0.1
million related to one Shack.
(3) For the fifty-two weeks ended December 28, 2022, Shack-level
operating profit margin includes a $1.3 million cumulative catch-up
adjustment for gift card breakage income, recognized in Shack
sales.
(4) As a percentage of Shack sales.
SHAKE SHACK INC.
NON-GAAP FINANCIAL MEASURES
(UNAUDITED)
EBITDA and Adjusted EBITDA
EBITDA is defined as Net income (loss) before Interest expense
(net of interest income), Income tax expense (benefit) and
Depreciation and amortization expense. Adjusted EBITDA is defined
as EBITDA (as defined above) excluding equity-based compensation
expense, Impairment and loss on disposal of assets, amortization of
cloud-based software implementation costs, as well as certain
non-recurring items that the Company does not believe directly
reflect its core operations and may not be indicative of the
Company's recurring business operations.
During the fiscal year ended December 27, 2023, the Company
revised its definition of Adjusted EBITDA to exclude deferred lease
costs and executive transition costs as adjustments to the measure.
The Company believes excluding both of these items improves the
usefulness of Adjusted EBITDA as these items are characteristic of
the Company’s ongoing operations and such presentation is
consistent with other companies in the restaurant industry.
Previously reported periods have been revised to conform to the
current period presentation.
How These Measures Are Useful
When used in conjunction with GAAP financial measures, EBITDA
and adjusted EBITDA are supplemental measures of operating
performance that the Company believes are useful measures to
facilitate comparisons to historical performance and competitors'
operating results. Adjusted EBITDA is a key metric used internally
by management to develop internal budgets and forecasts and also
serves as a metric in its performance-based equity incentive
programs and certain bonus arrangements. The Company believes
presentation of EBITDA and adjusted EBITDA provides investors with
a supplemental view of the Company's operating performance that
facilitates analysis and comparisons of its ongoing business
operations because they exclude items that may not be indicative of
the Company's ongoing operating performance.
Limitations of the Usefulness of These Measures
EBITDA and adjusted EBITDA may differ from similarly titled
measures used by other companies due to different methods of
calculation. Presentation of EBITDA and adjusted EBITDA is not
intended to be considered in isolation or as a substitute for, or
superior to, the financial information prepared and presented in
accordance with GAAP. EBITDA and adjusted EBITDA exclude certain
normal recurring expenses. Therefore, these measures may not
provide a complete understanding of the Company's performance and
should be reviewed in conjunction with the GAAP financial measures.
A reconciliation of EBITDA and adjusted EBITDA to Net income
(loss), the most directly comparable GAAP measure, is as
follows.
Thirteen Weeks Ended
Fifty-Two Weeks Ended
(dollar amounts in thousands)
December 27
2023
December 28
2022**
December 27
2023
December 28
2022**
Net income (loss)
$
6,796
$
(8,116
)
$
20,533
$
(23,012
)
Depreciation and amortization expense
24,538
19,207
91,242
72,796
Interest (income) expense, net
(562
)
373
(726
)
1,518
Income tax expense (benefit)
(5,296
)
3,825
(3,553
)
(1,273
)
EBITDA
25,476
15,289
107,496
50,029
Equity-based compensation
3,668
3,171
15,093
13,326
Amortization of cloud-based software
implementation costs
478
420
1,798
1,500
Impairment and loss on disposal of
assets(1)
909
728
3,007
2,425
Legal settlements(2)
(385
)
(40
)
619
6,710
Severance
—
—
211
—
CEO transition costs
206
—
206
—
Gift card breakage cumulative catch-up
adjustment
—
—
—
(1,281
)
Other(3)
1,065
—
3,386
—
Adjusted EBITDA
$
31,417
$
19,568
$
131,816
$
72,709
Adjusted EBITDA margin(4)
11.0
%
8.2
%
12.1
%
8.1
%
(1) For the thirteen and fifty-two weeks ended December 28,
2022, this amount includes a non-cash impairment charge of $0.1
million related to one Shack.
(2) Expenses incurred to establish accruals related to the
settlements of legal matters.
(3) Related to professional fees for a non-recurring matter.
(4) Calculated as a percentage of total revenue, which was
$286.2 million and $1,087.5 million for the thirteen and fifty-two
weeks ended December 27, 2023, respectively, and $238.5 million and
$900.5 million for the thirteen and fifty-two weeks ended December
28, 2022, respectively.
**As previously disclosed, in connection with the preparation of
the financial statements for the fiscal year ended December 27,
2023, management identified an error with the accounting for the
deferred tax asset associated with the investment in SSE Holdings,
LLC. The following adjustments have been made to the financial
information for fiscal 2022: a cumulative adjustment to fiscal 2022
opening retained earnings of approximately $14.2 million, a
decrease in income tax expense of approximately $3.0 million for
the thirteen and fifty-two weeks ended December 28, 2022 and an
increase in the fiscal 2022 deferred tax asset balance of
approximately $17.2 million.
SHAKE SHACK INC.
NON-GAAP FINANCIAL MEASURES
(UNAUDITED)
Adjusted Pro Forma Net Income (Loss) and Adjusted Pro Forma
Earnings (Loss) Per Fully Exchanged and Diluted Share
Adjusted pro forma net income (loss) represents Net income
(loss) attributable to Shake Shack Inc. assuming the full exchange
of all outstanding SSE Holdings, LLC membership interests ("LLC
Interests") for shares of Class A common stock, adjusted for
certain non-recurring items that the Company does not believe are
directly related to its core operations and may not be indicative
of recurring business operations. Adjusted pro forma earnings
(loss) per fully exchanged and diluted share is calculated by
dividing adjusted pro forma net income (loss) by the
weighted-average shares of Class A common stock outstanding,
assuming the full exchange of all outstanding LLC Interests, after
giving effect to the dilutive effect of outstanding equity-based
awards.
During the fiscal year ended December 27, 2023 , the Company
revised its definition of Adjusted Pro Forma Net Income to exclude
executive transition costs as an adjustment to the measure.
Previously reported periods have been revised to conform to the
current period presentation. See "EBITDA and Adjusted EBITDA" above
for additional information.
How These Measures Are Useful
When used in conjunction with GAAP financial measures, adjusted
pro forma net income (loss) and adjusted pro forma earnings (loss)
per fully exchanged and diluted share are supplemental measures of
operating performance that the Company believes are useful measures
to evaluate performance period-over-period and relative to its
competitors. By assuming the full exchange of all outstanding LLC
Interests, the Company believes these measures facilitate
comparisons with other companies that have different organizational
and tax structures, as well as comparisons period over period
because it eliminates the effect of any changes in Net income
(loss) attributable to Shake Shack Inc. driven by increases in its
ownership of SSE Holdings, which are unrelated to the Company's
operating performance, and excludes items that are non-recurring or
may not be indicative of ongoing operating performance.
Limitations of the Usefulness of These Measures
Adjusted pro forma net income (loss) and adjusted pro forma
earnings (loss) per fully exchanged and diluted share may differ
from similarly titled measures used by other companies due to
different methods of calculation. Presentation of adjusted pro
forma net income (loss) and adjusted pro forma earnings (loss) per
fully exchanged and diluted share should not be considered
alternatives to Net income (loss) and earnings (loss) per share, as
determined under GAAP. While these measures are useful in
evaluating the Company's performance, it does not account for the
earnings (loss) attributable to the non-controlling interest
holders and therefore does not provide a complete understanding of
the Net income (loss) attributable to Shake Shack Inc. Adjusted pro
forma net income (loss) and adjusted pro forma earnings (loss) per
fully exchanged and diluted share should be evaluated in
conjunction with GAAP financial results. A reconciliation of
adjusted pro forma net income (loss) to Net income (loss)
attributable to Shake Shack Inc., the most directly comparable GAAP
measure, and the computation of adjusted pro forma earnings (loss)
per fully exchanged and diluted share are set forth below.
Thirteen Weeks Ended
Fifty-Two Weeks Ended
(in thousands, except per share
amounts)
December 27
2023
December 28
2022**
December 27
2023
December 28
2022**
Numerator:
Net income (loss) attributable to Shake
Shack Inc.
$
6,766
$
(7,762
)
$
19,807
$
(21,136
)
Adjustments:
Reallocation of Net income (loss)
attributable to non-controlling interests from the assumed exchange
of LLC Interests(1)
30
(354
)
726
(1,876
)
Legal settlements
(385
)
(40
)
619
6,710
Gift card breakage cumulative catch-up
adjustment
—
—
—
(1,281
)
Asset impairment charge(2)
—
99
—
99
Severance
—
—
211
—
CEO transition costs
206
—
206
—
Other(3)
1,065
—
3,386
—
Tax impact of above adjustments(4)
(6,651
)
5,465
(8,797
)
4,543
Adjusted pro forma net income (loss)
$
1,031
$
(2,592
)
$
16,158
$
(12,941
)
Denominator:
Weighted-average shares of Class A common
stock outstanding—diluted
43,944
39,283
43,899
39,237
Adjustments:
Assumed exchange of LLC Interests for
shares of Class A common stock(1)
—
2,870
—
2,892
Adjusted pro forma fully exchanged
weighted-average shares of Class A common stock
outstanding—diluted
43,944
42,153
43,899
42,129
Adjusted pro forma loss per fully
exchanged share—diluted
$
0.02
$
(0.06
)
$
0.37
$
(0.31
)
Thirteen Weeks Ended
Fifty-Two Weeks Ended
December 27
2023
December 28
2022**
December 27
2023
December 28
2022**
Earnings (loss) per share of Class A
common stock—diluted
$
0.15
$
(0.20
)
$
0.47
$
(0.54
)
Assumed exchange of LLC Interests for
shares of Class A common stock(1)
—
0.01
—
(0.01
)
Non-GAAP adjustments(5)
(0.13
)
0.13
(0.10
)
0.24
Adjusted pro forma earnings (loss) per
fully exchanged share—diluted
$
0.02
$
(0.06
)
$
0.37
$
(0.31
)
(1) Assumes the exchange of all outstanding LLC Interests for
shares of Class A common stock, resulting in the elimination of the
non-controlling interest and recognition of the net income (loss)
attributable to non-controlling interests. For the thirteen and
fifty-two weeks ended December 27, 2023, this exchange is included
in weighted-average shares of Class A common stock
outstanding-diluted and therefore no additional share and per share
adjustments are required.
(2) For the thirteen and fifty-two weeks ended December 28,
2022, this amount includes a non-cash impairment charge of $0.1
million related to one Shack.
(3) Related to professional fees for a non-recurring matter.
(4) Represents the tax effect of the aforementioned adjustments
and pro forma adjustments to reflect corporate income taxes at
assumed effective tax rates of 56.8% and 24.5% for the thirteen and
fifty-two weeks ended December 27, 2023, respectively, and 38.8%
and 31.0% for the thirteen and fifty-two weeks ended December 28,
2022, respectively. Amounts include provisions for U.S. federal
income taxes, certain LLC entity-level taxes and foreign
withholding taxes, assuming the highest statutory rates apportioned
to each applicable state, local and foreign jurisdiction.
(5) Represents the per share impact of non-GAAP adjustments for
each period. Refer to the reconciliation of Adjusted Pro Forma Net
Income (Loss) above for additional information.
**As previously disclosed, in connection with the preparation of
the financial statements for the fiscal year ended December 27,
2023, management identified an error with the accounting for the
deferred tax asset associated with the investment in SSE Holdings,
LLC. The following adjustments have been made to the financial
information for fiscal 2022: a cumulative adjustment to fiscal 2022
opening retained earnings of approximately $14.2 million, a
decrease in income tax expense of approximately $3.0 million for
the thirteen and fifty-two weeks ended December 28, 2022 and an
increase in the fiscal 2022 deferred tax asset balance of
approximately $17.2 million.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240215545377/en/
Media:
Media:
Meg Davis, Shake Shack mcastranova@shakeshack.com
Investor Relations:
Melissa Calandruccio, ICR Michelle Michalski, ICR (844) SHACK-04
(844-742-2504) investor@shakeshack.com
Shake Shack (NYSE:SHAK)
過去 株価チャート
から 12 2024 まで 1 2025
Shake Shack (NYSE:SHAK)
過去 株価チャート
から 1 2024 まで 1 2025
