Shake Shack's International Expansion Plans
Company's financial reports show plans to open five overseas Shacks this year.
The company now has 27 international-licensed Shacks.
Shake Shack Inc. announced that it expects to open at least five international licensed Shacks under its current license agreements in the UK and Middle East, all of which are scheduled to open towards the end of fiscal year 2015.
As of December 31, 2014, system-wide, the Company had 63 Shacks, of which, 31 were domestic company-operated, five were domestic licensed and 27 were international licensed, according to its financial report for the fiscal year that ended on 31 December 2014.
Internationally, the Company entered into an exclusive licensing agreement with Sazaby League, Ltd., a leading retail and food operator, for the development of up to 10 new Shacks in Japan over the next five years. The first Shake Shack in Japan is expected to open in 2016.
In the report, Shake Shack’s 2014 total revenue increased by 43.7% to $118.5 million. Its adjusted EBITDA rose 30.6% to $18.9 million.
Randy Garutti, Chief Executive Officer of Shake Shack, stated, “We are pleased with the strength of our fourth quarter results and excited to begin our journey as a public company. Our culture of Enlightened Hospitality has enabled Shake Shack to become a globally beloved brand where all of our stakeholders are rooting for our success. We are witnessing a seismic shift in people’s understanding and expectations of food and, for the last decade, Shake Shack has helped lead the change in consumer behavior through our fine casual approach. We will continue to invest in high quality, premium ingredients that our guests have come to expect from us, while creating a vibrant community gathering place that delivers a meaningful guest experience.”
