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Sep 29, 2021

Shake Shack Q3 2021 Earnings Report

Highest revenue quarter ever, driven by positive sales performance and recovery in urban and suburban Shacks.

Key Takeaways

Shake Shack reported a strong third quarter with total revenue increasing by 48.7% year-over-year to $193.9 million and system-wide sales growing by 53.1% to $298.6 million. Same-Shack Sales were up 24.8% versus 2020. The company saw benefits from urban Shacks as guests returned to offices, events, commuting and tourism-based locations, while suburban Shacks continued to recover above 2019 levels.

Total Revenue grew 48.7% year-over-year to $193.9 million, and system-wide sales grew 53.1% to nearly $299 million.

Third quarter Same-Shack Sales were up 24.8% versus 2020.

Momentum versus 2019 continued into fiscal October with overall Same-Shack Sales down 1% and suburban Same-Shack Sales up 7%.

Retained nearly 80% of digital sales in fiscal September from high in fiscal January 2021. Acquired 14% more first time purchasers through Company-owned digital channels versus the prior quarter.

Total Revenue
$194M
Previous year: $130M
+48.7%
EPS
-$0.05
Previous year: -$0.11
-54.5%
Same-Shack Sales
24.8%
Previous year: -31.7%
-178.2%
Shack-Level Operating Profit
$29.6M
Previous year: $14.8
+199905305.4%
Gross Profit
$77.8M
Previous year: $54.6M
+42.4%
Cash and Equivalents
$321M
Previous year: $175M
+83.8%
Free Cash Flow
-$17.4M
Previous year: $1.14M
-1627.0%
Total Assets
$1.44B
Previous year: $1.14B
+26.7%

Shake Shack

Shake Shack

Shake Shack Revenue by Segment

Forward Guidance

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

Positive Outlook

  • Total revenue $193.5 million to $200 million
  • Shack sales $187 million to $193 million
  • Licensing revenue $6.5 million to $7 million
  • Same-Shack sales versus 2020 + mid to high teens
  • Shack-level operating profit margin 14% to 16%

Revenue & Expenses

Visualization of income flow from segment revenue to net income