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Mar 31, 2021

Shake Shack Q1 2021 Earnings Report

Shake Shack's financial performance saw revenue increase and same-shack sales improve, but operating loss persisted.

Key Takeaways

Shake Shack reported an 8.5% increase in total revenue to $155.3 million for the first quarter of 2021. Same-Shack sales improved by 5.7%. The company opened 10 domestic company-operated shacks and 2 licensed shacks during the quarter. However, the operating loss was $10.0 million, compared to a $0.8 million loss in the same period last year.

Total revenue increased by 8.5% to $155.3 million compared to Q1 2020.

Same-Shack sales increased by 5.7% compared to the same period last year.

Shack system-wide sales increased by 3.0% to $228.3 million.

The company opened 10 new domestic company-operated Shacks and two new licensed Shacks.

Total Revenue
$155M
Previous year: $143M
+8.4%
EPS
$0.04
Previous year: $0.02
+100.0%
Same-Shack Sales
5.7%
Previous year: -12.8%
-144.5%
Shack-Level Operating Profit
$22.6M
Previous year: $26.4M
-14.4%
Gross Profit
$64.3M
Previous year: $61.8M
+3.9%
Cash and Equivalents
$375M
Previous year: $87.8M
+327.1%
Free Cash Flow
-$13.2M
Previous year: -$11.7M
+13.1%
Total Assets
$1.41B
Previous year: $1.04B
+35.3%

Shake Shack

Shake Shack

Shake Shack Revenue by Segment

Forward Guidance

The Company is providing revenue and sales guidance for the second quarter 2021.

Positive Outlook

  • Total Revenue $174 million to $183 million
  • Shack Sales $170 million to $178 million
  • Licensed Revenue $4 million to $5 million
  • Same-Shack Sales versus 2020 + mid 40s% to 50% increase
  • Shack-Level Operating Profit 15% to 17%

Challenges Ahead

  • Given the substantial uncertainty and resulting material economic impact caused by the COVID-19 pandemic, the Company is not providing full guidance for the fiscal year ending December 29, 2021
  • Impacted by the ongoing uncertainty due to COVID
  • Rate of recovery continues to be impacted by COVID
  • Development plans continue to be impacted by COVID
  • Many major urban markets, such as Manhattan, remain materially below pre-COVID levels, while office, events and tourism traffic return.

Revenue & Expenses

Visualization of income flow from segment revenue to net income