On this page of StockholderLetter.com we present the latest annual shareholder letter from Shake Shack Inc. — ticker symbol SHAK. Reading current and past SHAK letters to shareholders can bring important insights into the investment thesis.
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4/24/2025 Letter Continued (Full PDF)
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5/19/2023 SHAK Stockholder Letter
• 4/25/2024 SHAK Stockholder Letter
• More "Hotels" Category Stockholder Letters
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SHAK Benford's Law Stock Score = 92
4/24/2025 Letter Continued (Full PDF)
•
5/19/2023 SHAK Stockholder Letter•
4/25/2024 SHAK Stockholder Letter•
More "Hotels" Category Stockholder Letters•
SHAK Benford's Law Stock Score = 92SHAK Shareholder/Stockholder Letter Transcript:
2024 Annual Report F U L L Y E A R 2 0 2 4 R E S U LT S Total Revenue $1,252.6M $1,922.7M FY 2024 Total Revenue Shack System-wide Sales1 + 15.2% growth year-over-year + 13.0% growth year-over-year +15.2% growth year-over-year $1,253M $1,088M $900M $740M $595M $523M GAAP Profitability Metrics: $3.0M $10.8M Operating Income Net Income 2019 2020 2021 2022 2023 2024 Shack System-wide Sales +13.0% growth year-over-year Non-GAAP Profitability Metrics: $257.9M $175.6M Restaurant-level Profit2 Adjusted EBITDA3 21.4% of Shack Sales 14.0% of Total Revenue + 23.8% growth year-over-year + 33.2% growth year-over-year $1,923M $1,702M $1,378M $895M 2019 1. 2. 3. $1,123M $779M 2020 2021 2022 2023 2024 System-wide sales is an operating measure and consists of sales from Company-operated Shacks and 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 licensed Shacks, as well as certain up-front fees, such as territory fees and opening fees. "Restaurant-level profit," a non-GAAP measure, also formerly referred to as Shack-level operating profit, 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. A reconciliation to the most directly comparable financial measure presented in accordance with GAAP is set forth in the Non-GAAP Financial Measures section within Item 7 of the Form 10-K for the fiscal year ended December 25, 2024. Adjusted EBITDA, a non-GAAP measure, is defined as EBITDA excluding equity-based compensation expense, Impairments, loss on disposal of assets, and Shack closures, amortization of cloud-based software implementation costs, as well as certain non-recurring items that we do not believe directly reflect our core operations and may not be indicative of our recurring business operations. A reconciliation to the most directly comparable financial measure presented in accordance with GAAP is set forth in the Non-GAAP Financial Measures section within Item 7 of the Form 10-K for the fiscal year ended December 25, 2024. 2 2024 BUSINESS HIGHLIGHTS Average Weekly Sales ( AWS )1 AWS Total YoY Shack Sales Growth (Decline) 120% AWS grew 1.3% in 2024 versus 100% 2023. We achieved the highest 80% AWS since 2019, supported by our 60% marketing initiatives and culinary 40% innovation. 20% 0% -20% $75 $70 $65 $60 21% 15% 17% 15% 15% 15% $75K $73K $77K $76K $79K $76K Full Year 2023 First Quarter 2024 Second Quarter 2024 Third Quarter 2024 Fourth Quarter 2024 Full Year 2024 $55 $50 AWS Same-Shack Sales % Fourth Quarter 2023 Same-Shack sales (SSS) grew 3.6% in 2024 versus 2023 driven by our marketing and sales-driving strategies and success of our limitedtime offerings including Summer BBQ and Black Truffle. First Quarter 2024 4% 2% 3% Second Quarter 2024 5% 4% 1% 1% Third Quarter 2024 4% 4% 0% (1%) Fourth Quarter 2024 5% 4% (1%) (2%) Total SSS % Traffic % Price/Mix % System-wide Shack Count +11.8% Domestic Company-operated Domestic licensed International licensed 518 275 1. 311 369 126 25 436 149 33 184 39 579 206 44 90 22 106 22 183 218 254 295 329 163 2019 2020 2021 2022 2023 2024 System-wide Shack Count grew 11.8% in 2024 versus 2023. We opened 43 new Company-operated Shacks, marking our largest class on record. We opened 33 new licensed Shacks with our partners, including three new markets Canada, Israel, and Malaysia. Average Weekly Sales ( AWS ) is calculated by dividing total Shack sales by the number of operating weeks for all Shacks in operation during the period. For Shacks that are not open for the entire period, fractional adjustments are made to the number of operating weeks such that it corresponds to the period of associated sales. 3 W E S TA N D FOR SOMETHING GOOD This year, we will be sharing our progress and what's ahead in our 2024 Stand For Something Good Summary. It will be made available at investor.shakeshack.com in the Corporate Governance section. We will share our status against our commitments, from social impact to environmental responsibility and governance. In creating this summary, we will engage stakeholders, collect impact data, work with our leadership team to ensure alignment, highlight suppliers focus on quality ingredients, and identify areas for progress in the future.