Shake Shack first quarter revenues soar 33.8%
Warm weather pushed total revenue for the burger chain to US$132.6 million.
For the 13-week period ended 27 March, 2019, Shake Shack saw system-wide sales grow by 33.5% to US$195.2 million while same-store sales rose 3.6%, citing new openings, the holiday shift and warm weather conditions" across a number of key markets.
Operating income, however, decreased to US$5.2 million for the first quarter of 2019 from US$6.5 million in the same quarter last year.
Total revenue, which includes Shack sales and licensing revenue, increased 33.8% to US$132.6 million in the period, from $99.1 million in the first quarter of 2018. Shack sales were recorded at US$128.6 million compared to $96.1 million in the same quarter last year, an increase of US$32.5 million, or 33.8%, due primarily to the opening of 34 new domestic company-operated Shacks between the first quarter of 2019 and the first quarter of 2018, as well as same-Shack sales growth.
Licensing revenue for the first quarter was US$4.0 million, an increase of 33.5% from US$3.0 million in the same quarter last year, due primarily to the opening of 16 net new licensed Shacks.
“We are pleased with the strong momentum from 2018 carried forward into the first quarter of this year. We grew total revenue by almost 34%, Adjusted EBITDA by over 10% and delivered positive same-Shack sales of 3.6%, including a return to positive traffic growth of 1.6%. Our performance was supported by the strength from new openings, the holiday shift and warm weather conditions across a number of key markets early in the quarter and the continued growth of our digital channels, where we see significant ongoing opportunities,” Randy Garutti, Chief Executive Officer of Shake Shack, said.
“Based on our first quarter results, we are raising both our overall revenue and same-Shack Sales expectations for the year. We are on track to open 36 to 40 new company-operated Shacks, marking our largest class yet. We also plan to open 16 to 18 net new licensed Shacks with our international growth focused on Asia and our new markets of mainland China, Singapore, the Philippines and Mexico. 2019 is off to a solid start as we remain focused on the execution of our key strategic commitments that will continue to drive growth.”
Shake Shack opened five domestic company-operated Shacks during the first quarter period, which included its first Shack in Providence, Rhode Island, and four international licensed Shacks, which includes its first outlet in mainland China.
