shak william blair presentation 6 12 18 600pm · microsoft powerpoint - shak william blair...
TRANSCRIPT
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Shake Shack is a growing, loyal, connected community. We are relentlessly focused on
excellence, experience and hospitality.
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Consistent strong financial performance over 5+ years
$57 $82 $119$191
$268$359
’14 ’17’13’12 ’15 ’16
$81 $140 $217 $295$403
$532
’16’12 ’14’13 ’15 ’17
$12 $13 $14$41
$54$71
’12 ’13 ’14 ’15 ’17’16
40 63 84114
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21’17’16’12 ’14’13 ’15
Total Revenue ($M)
Shack System-wide Sales1 ($M)
Cash Flow from Operations ($M)
System-wide Shack Count
66
First Quarter 2018 Results
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40
63
84
114
159
210+
Total Revenue ($M)
On track to achieve 2018 targets
$82$119
$191
$268
$359
$446 - $450
’13 ’14 ’15 ’16 ’18E ’17
Shack Count
’13 ’14 ’15 ’16 ’18E ’17
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Domestic growth delivering increased momentum
Domestic Company-Operated Shacks at Period End
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64
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’12 ’17’15’13 ’14 ’16
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’18E
122 - 125
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Denver, CO
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Charlotte, NC
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Rice Village, TX
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Aventura Mall, FL
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Nashville, TN
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Birmingham, AL
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Seattle, WA
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Marin County, SF
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2018 - Significant growth year with focus on AsiaLicensed Shacks at Period End
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26 30 33
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’13
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’17’14’12 ’15 ’16 ’18E
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85 - 87
Middle East, Turkey, Russia Japan, KoreaUK US
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IFC, Hong Kong
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Central City, Seoul, Korea
2020
Roppongi, Tokyo, Japan
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Experience meets Convenience
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Digital innovation a key focus & area of investment
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Delivery - Your Shack whenever, wherever
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Digital innovation a key focus & area of investment
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Self-order Kiosks
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Digital innovation a key focus & area of investment
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Menu Innovation
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BBQ line-up
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Griddled Chicken•
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Menu Innovation
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Menu Innovation
Veggie Shack
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People and Culture
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Looking ahead…
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Appendix
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Definitions
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Shack-Level Operating Profit
Shack-Level Operating Profit
How This Measure Is Useful
Limitations of the Usefulness of this Measure
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Shack-Level Operating Profit
(dollar amounts in thousands) March 28, 2018 March 29, 2017Operating income 6,514$ 5,628$ Less:Licensing revenue 3,027 2,594
Add:General and administrative expenses 11,809 8,470 Depreciation expense 6,498 4,748 Pre-opening costs 2,029 2,415 Loss on disposal of property and equipment 190 13
Shack-level operating profit 24,013$ 18,680$
Total revenue 99,116$ 76,749$ Less: licensing revenue 3,027 2,594 Shack sales 96,089$ 74,155$
Shack-level operating profit margin 25.0% 25.2%
Thirteen Weeks Ended
3333
Adjusted EBITDA
EBITDA and Adjusted EBITDA
How These Measures Are Useful
Limitations of the Usefulness of These Measures
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Adjusted EBITDA
(in thousands) March 28, 2018 March 29, 2017Net income 4,979$ 3,862$ Depreciation expense 6,498 4,748 Interest expense, net 558 283 Income tax expense 1,198 1,658 EBITDA 13,233 10,551
Equity-based compensation 1,437 1,249 Deferred rent 69 225 Loss on disposal of property and equipment 190 13 Executive transition costs(1)
— 134 Project Concrete(2)
239 —Costs related to relocation of Home Office(3)
998 —ADJUSTED EBITDA 16,166 12,172
Adjusted EBITDA margin 16.3% 15.9%
Thirteen Weeks Ended
(1) Represents costs incurred in connection with the search for the Company's chief financial officer, including fees paid to an executive recruiting firm.
(2) Represents consulting and advisory fees related to the Company's operational and financial system upgrade initiative called Project Concrete.
(3) Costs incurred in connection with the Company's relocation to a new Home Office, which is comprised of: (i) $326 of duplicative non-cash deferred rent and (ii) $672 net loss on the sublease of the Company's prior Home Office, including the write-off of certain fixed assets.