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Shake Shack Announces Fourth Quarter and Fiscal Year 2022 Financial Results

Financial Highlights for the Fourth Quarter 2022:

  • Total revenue of $238.5 million, up 17.4% versus 2021, including $229.9 million of Shack sales and $8.6 million of Licensing revenue.
  • System-wide sales of $364.1 million, up 15.8% versus 2021.
  • Same-Shack sales up 5.1% versus 2021.
  • Operating loss of $6.3 million.
    • Shack-level operating profit(1)of $43.2 million, or 18.8% of Shack sales.
  • Net loss of $11.1 million.
    • Adjusted EBITDA(1) of $19.3 million.
  • Net loss attributable to Shake Shack Inc. of $10.7 million, or a loss of $0.27 per share.
    • Adjusted pro forma net loss(1) of $2.6 million, or a loss of $0.06 per fully exchanged and diluted share.
  • Opened 22 new domestic Company-operated Shacks. Opened 13 new licensed Shacks, including locations in China, Japan, and Mexico.

Financial Highlights for the Fiscal Year 2022:

  • Total revenue of $900.5 million, up 21.7% versus 2021, including $869.3 million of Shack sales and $31.2 million of Licensing revenue.
  • System-wide sales of $1,378.5 million, up 22.7% versus 2021.
  • Same-Shack sales up 7.8% versus 2021.
  • Operating loss of $26.9 million.
    • Shack-level operating profit(1)of $151.0 million, or 17.4% of Shack sales.
  • Net loss of $26.0 million.
    • Adjusted EBITDA(1) of $70.5 million.
  • Net loss attributable to Shake Shack Inc. of $24.1 million, or a loss of $0.61 per share.
    • Adjusted pro forma net loss(1) of $12.9 million, or a loss of $0.31 per fully exchanged and diluted share.
  • Opened 36 new domestic Company-operated Shacks. Opened 33 new licensed Shacks, including locations in 4 new markets in China.

NEW YORK–(BUSINESS WIRE)–Shake Shack Inc. (“Shake Shack” or the “Company”) (NYSE: SHAK) has posted its results for the fourth quarter and the fiscal year ended December 28, 2022 in a Shareholder Letter in the Quarterly Results section of the Company’s Investor Relations website, which can be found here: Q4 2022 Shareholder Letter.

Shake Shack will host a conference call at 8:00 a.m. ET. Hosting the call will be Randy Garutti, Chief Executive Officer, and Katherine Fogertey, Chief Financial Officer. The conference call can be accessed live over the phone by dialing (877) 407-0792, or for international callers by dialing (201) 689-8263. A replay of the call will be available until February 23, 2023 by dialing (844) 512-2921 or for international callers by dialing (412) 317-6671; the passcode is 13734860.

The live audio webcast of the conference call will be accessible in the Events & Presentations section of the Company’s Investor Relations website at investor.shakeshack.com. An archived replay of the webcast will also be available shortly after the live event has concluded.

(1)

Shack-level operating profit, Adjusted EBITDA and Adjusted pro forma net income (loss) are non-GAAP measures. A reconciliation to the most directly comparable financial measures presented in accordance with GAAP is set forth in the schedules accompanying this release. See “Non-GAAP Financial Measures” below.

About Shake Shack

Shake Shack serves elevated versions of American classics using only the best ingredients. It’s known for its delicious made-to-order Angus beef burgers, crispy chicken, hand-spun milkshakes, house-made lemonades, beer, wine, and more. With its high-quality food at a great value, warm hospitality, and a commitment to crafting uplifting experiences, Shake Shack quickly became a cult-brand with widespread appeal. Shake Shack’s purpose is to Stand For Something Good®, from its premium ingredients and employee development, to its inspiring designs and deep community investment. Since the original Shack opened in 2004 in NYC’s Madison Square Park, the Company has expanded to over 440 locations system-wide, including about 290 in 32 U.S. States and the District of Columbia, and over 150 international locations across London, Hong Kong, Shanghai, Singapore, Mexico City, Istanbul, Dubai, Tokyo, Seoul and more.

Skip the line with the Shack App, a mobile ordering app that lets you save time by ordering ahead! Guests can select their location, pick their food, choose a pickup time and their meal will be cooked-to-order and timed to arrival. Available on iOS and Android.

Definitions

The following definitions apply to these terms as used in this release:

“Shack sales” is defined as the aggregate sales of food, beverages, gift card breakage income and Shake Shack branded merchandise at domestic Company-operated Shacks and excludes sales from licensed Shacks.

“System-wide sales” is an operating measure and consists of sales from the Company’s domestic Company-operated Shacks, domestic licensed Shacks and international 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 domestic and international licensed Shacks, as well as certain up-front fees, such as territory fees and opening fees.

“Same-Shack sales” represents Shack sales for the comparable Shack base, which is defined as the number of domestic Company-operated Shacks open for 24 full fiscal months or longer. For consecutive days that Shacks were temporarily closed, the comparative period was also adjusted.

“Shack-level operating profit,” a non-GAAP measure, 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.

“Shack-level operating profit margin,” a non-GAAP measure, 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 as a percentage of Shack sales.

“EBITDA,” a non-GAAP measure, is defined as Net income (loss) before interest expense (net of interest income), Income tax expense (benefit), and Depreciation and amortization expense.

“Adjusted EBITDA,” a non-GAAP measure, is defined as EBITDA (as defined above), excluding equity-based compensation expense, deferred lease costs, Impairment and loss on disposal of assets, amortization of cloud-based software implementation costs, as well as certain non-recurring items that the Company does not believe directly reflect its core operations and may not be indicative of the Company’s recurring business operations.

“Adjusted pro forma net income,” a non-GAAP measure, represents Net income (loss) attributable to Shake Shack Inc. assuming the full exchange of all outstanding SSE Holdings, LLC membership interests (“LLC Interests”) for shares of Class A common stock, adjusted for certain non-recurring and other items that the Company does not believe directly reflect its core operations and may not be indicative of the Company’s recurring business operations.

SHAKE SHACK INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

(in thousands, except share and per share amounts)

 

December 28
2022

 

December 29
2021

ASSETS

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

230,521

 

 

$

302,406

Marketable securities

 

80,707

 

 

 

80,000

Accounts receivable, net

 

13,877

 

 

 

13,657

Inventories

 

4,184

 

 

 

3,850

Prepaid expenses and other current assets

 

14,699

 

 

 

9,763

Total current assets

 

343,988

 

 

 

409,676

Property and equipment, net of accumulated depreciation of $290,362 and $222,768, respectively

 

467,031

 

 

 

389,386

Operating lease assets

 

367,488

 

 

 

347,277

Deferred income taxes, net

 

300,538

 

 

 

298,668

Other assets

 

15,817

 

 

 

12,563

TOTAL ASSETS

$

1,494,862

 

 

$

1,457,570

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Current liabilities

 

 

 

Accounts payable

$

20,407

 

 

$

19,947

Accrued expenses

 

47,945

 

 

 

36,892

Accrued wages and related liabilities

 

17,576

 

 

 

14,638

Operating lease liabilities, current

 

42,238

 

 

 

35,519

Other current liabilities

 

19,552

 

 

 

14,501

Total current liabilities

 

147,718

 

 

 

121,497

Long-term debt

 

244,589

 

 

 

243,542

Long-term operating lease liabilities

 

427,227

 

 

 

400,113

Liabilities under tax receivable agreement, net of current portion

 

234,893

 

 

 

234,045

Other long-term liabilities

 

20,687

 

 

 

22,773

Total liabilities

 

1,075,114

 

 

 

1,021,970

Commitments and contingencies

 

 

 

Stockholders’ equity:

 

 

 

Preferred stock, no par value—10,000,000 shares authorized; none issued and outstanding as of December 28, 2022 and December 29, 2021.

 

 

 

 

Class A common stock, $0.001 par value—200,000,000 shares authorized; 39,284,998 and 39,142,397 shares issued and outstanding as of December 28, 2022 and December 29, 2021, respectively.

 

39

 

 

 

39

Class B common stock, $0.001 par value—35,000,000 shares authorized; 2,869,513 and 2,921,587 shares issued and outstanding as of December 28, 2022 and December 29, 2021, respectively.

 

3

 

 

 

3

Additional paid-in capital

 

415,611

 

 

 

405,940

Retained earnings (accumulated deficit)

 

(20,537

)

 

 

3,554

Accumulated other comprehensive income

 

 

 

 

1

Total stockholders’ equity attributable to Shake Shack Inc.

 

395,116

 

 

 

409,537

Non-controlling interests

 

24,632

 

 

 

26,063

Total equity

 

419,748

 

 

 

435,600

TOTAL LIABILITIES AND MEMBERS’ EQUITY

$

1,494,862

 

 

$

1,457,570

SHAKE SHACK INC.

CONSOLIDATED STATEMENTS OF LOSS

(UNAUDITED)

(in thousands, except per share amounts)

 

 

Fiscal Quarter Ended

 

Fiscal Year Ended

 

December 28
2022

 

December 29
2021

 

December 28
2022

 

December 29
2021

Shack sales

$

229,924

 

96.4

%

 

$

195,879

 

96.4

%

 

$

869,270

 

96.5

%

 

$

714,989

 

96.6

%

Licensing revenue

 

8,605

 

3.6

%

 

 

7,377

 

3.6

%

 

 

31,216

 

3.5

%

 

 

24,904

 

3.4

%

TOTAL REVENUE

 

238,529

 

100.0

%

 

 

203,256

 

100.0

%

 

 

900,486

 

100.0

%

 

 

739,893

 

100.0

%

Shack-level operating expenses(1):

 

 

 

 

 

 

 

 

 

 

 

Food and paper costs

 

67,939

 

29.5

%

 

 

60,790

 

31.0

%

 

 

261,584

 

30.1

%

 

 

218,262

 

30.5

%

Labor and related expenses

 

66,404

 

28.9

%

 

 

57,893

 

29.6

%

 

 

257,358

 

29.6

%

 

 

215,114

 

30.1

%

Other operating expenses

 

34,103

 

14.8

%

 

 

29,200

 

14.9

%

 

 

130,869

 

15.1

%

 

 

103,232

 

14.4

%

Occupancy and related expenses

 

18,238

 

7.9

%

 

 

15,801

 

8.1

%

 

 

68,508

 

7.9

%

 

 

59,228

 

8.3

%

General and administrative expenses

 

31,750

 

13.3

%

 

 

25,561

 

12.6

%

 

 

118,790

 

13.2

%

 

 

85,996

 

11.6

%

Depreciation and amortization expense

 

19,207

 

8.1

%

 

 

15,610

 

7.7

%

 

 

72,796

 

8.1

%

 

 

58,991

 

8.0

%

Pre-opening costs

 

6,474

 

2.7

%

 

 

4,524

 

2.2

%

 

 

15,050

 

1.7

%

 

 

13,291

 

1.8

%

Impairment and loss on disposal of assets

 

728

 

0.3

%

 

 

370

 

0.2

%

 

 

2,425

 

0.3

%

 

 

1,632

 

0.2

%

TOTAL EXPENSES

 

244,843

 

102.6

%

 

 

209,749

 

103.2

%

 

 

927,380

 

103.0

%

 

 

755,746

 

102.1

%

LOSS FROM OPERATIONS

 

(6,314

)

(2.6

) %

 

 

(6,493

)

(3.2

) %

 

 

(26,894

)

(3.0

) %

 

 

(15,853

)

(2.1

) %

Other income (expense), net

 

2,396

 

1.0

%

 

 

(62

)

%

 

 

4,127

 

0.5

%

 

 

95

 

%

Interest expense

 

(373

)

(0.2

) %

 

 

(353

)

(0.2

) %

 

 

(1,518

)

(0.2

) %

 

 

(1,577

)

(0.2

) %

LOSS BEFORE INCOME TAXES

 

(4,291

)

(1.8

) %

 

 

(6,908

)

(3.4

) %

 

 

(24,285

)

(2.7

) %

 

 

(17,335

)

(2.3

) %

Income tax expense (benefit)

 

6,780

 

2.8

%

 

 

3,441

 

1.7

%

 

 

1,682

 

0.2

%

 

 

(7,224

)

(1.0

) %

NET LOSS

 

(11,071

)

(4.6

) %

 

 

(10,349

)

(5.1

) %

 

 

(25,967

)

(2.9

) %

 

 

(10,111

)

(1.4

) %

Less: Net loss attributable to non-controlling interests

 

(354

)

(0.1

) %

 

 

(619

)

(0.3

) %

 

 

(1,876

)

(0.2

) %

 

 

(1,456

)

(0.2

) %

NET LOSS ATTRIBUTABLE TO SHAKE SHACK INC.

$

(10,717

)

(4.5

) %

 

$

(9,730

)

(4.8

) %

 

$

(24,091

)

(2.7

) %

 

$

(8,655

)

(1.2

) %

 

 

 

 

 

 

 

 

 

 

 

 

Loss per share of Class A common stock:

 

 

 

 

 

 

 

 

 

 

 

Basic

$

(0.27

)

 

 

$

(0.25

)

 

 

$

(0.61

)

 

 

$

(0.22

)

 

Diluted

$

(0.27

)

 

 

$

(0.25

)

 

 

$

(0.61

)

 

 

$

(0.22

)

 

Weighted-average shares of Class A common stock outstanding:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

39,283

 

 

 

 

39,141

 

 

 

 

39,237

 

 

 

 

39,085

 

 

Diluted

 

39,283

 

 

 

 

39,141

 

 

 

 

39,237

 

 

 

 

39,085

 

 

________________

(1)

As a percentage of Shack sales.

SHAKE SHACK INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

(in thousands)

 

 

Fiscal Year Ended

 

December 28
2022

 

December 29
2021

OPERATING ACTIVITIES

 

 

 

Net loss (including amounts attributable to non-controlling interests)

$

(25,967

)

 

$

(10,111

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

Depreciation and amortization expense

 

72,796

 

 

 

58,991

 

Amortization of debt issuance costs

 

1,047

 

 

 

867

 

Amortization of cloud computing asset

 

1,500

 

 

 

1,245

 

Non-cash operating lease cost

 

58,801

 

 

 

50,888

 

Equity-based compensation

 

13,326

 

 

 

8,703

 

Deferred income taxes

 

(3,357

)

 

 

(10,379

)

Non-cash interest expense

 

218

 

 

 

353

 

(Gain) loss on sale of marketable securities

 

 

 

 

5

 

Impairment and loss on disposal of assets

 

2,425

 

 

 

1,632

 

Other non-cash expense (income)

 

(1

)

 

 

(4

)

Unrealized loss on equity securities

 

158

 

 

 

277

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

 

9,139

 

 

 

(4,193

)

Inventories

 

(334

)

 

 

(962

)

Prepaid expenses and other current assets

 

(2,473

)

 

 

4,913

 

Other assets

 

(8,065

)

 

 

(2,722

)

Accounts payable

 

3,541

 

 

 

(6,450

)

Accrued expenses

 

4,707

 

 

 

7,175

 

Accrued wages and related liabilities

 

2,859

 

 

 

4,200

 

Other current liabilities

 

8,541

 

 

 

(1,166

)

Operating lease liabilities

 

(61,364

)

 

 

(43,417

)

Other long-term liabilities

 

(756

)

 

 

(1,443

)

NET CASH PROVIDED BY OPERATING ACTIVITIES

 

76,741

 

 

 

58,402

 

INVESTING ACTIVITIES

 

 

 

Purchases of property and equipment

 

(142,559

)

 

 

(101,495

)

Purchases of marketable securities

 

(865

)

 

 

(47,399

)

Sales of marketable securities

 

 

 

 

4,004

 

NET CASH USED IN INVESTING ACTIVITIES

 

(143,424

)

 

 

(144,890

)

FINANCING ACTIVITIES

 

 

 

Proceeds from issuance of convertible notes, net of discount

 

 

 

 

243,750

 

Deferred financing costs

 

 

 

 

(169

)

Payments on principal of finance leases

 

(2,974

)

 

 

(2,694

)

Distributions paid to non-controlling interest holders

 

(410

)

 

 

(968

)

Debt issuance costs

 

 

 

 

(1,075

)

Net proceeds from stock option exercises

 

424

 

 

 

6,731

 

Employee withholding taxes related to net settled equity awards

 

(2,242

)

 

 

(3,554

)

NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES

 

(5,202

)

 

 

242,021

 

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

 

(71,885

)

 

 

155,533

 

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

 

302,406

 

 

 

146,873

 

CASH AND CASH EQUIVALENTS AT END OF PERIOD

$

230,521

 

 

$

302,406

 

SHAKE SHACK INC.

NON-GAAP FINANCIAL MEASURES

(UNAUDITED)

To supplement the Consolidated Financial Statements, which are prepared and presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”), the Company uses the following non-GAAP financial measures: Shack-level operating profit, Shack-level operating profit margin, EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted pro forma net loss and adjusted pro forma loss per fully exchanged and diluted share and adjusted pro forma effective tax rate (collectively the “non-GAAP financial measures”).

Shack-Level Operating Profit

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.

How This Measure Is Useful

When used in conjunction with GAAP financial measures, Shack-level operating profit and Shack-level operating profit margin are supplemental measures of operating performance that the Company believes are useful measures to evaluate the performance and profitability of its Shacks. Additionally, Shack-level operating profit and Shack-level operating profit margin are key metrics used internally by management to develop internal budgets and forecasts, as well as assess the performance of its Shacks relative to budget and against prior periods. It is also used to evaluate team member compensation as it serves as a metric in certain performance-based team member bonus arrangements. The Company believes presentation of Shack-level operating profit and Shack-level operating profit margin provides investors with a supplemental view of its operating performance that can provide meaningful insights to the underlying operating performance of the Shacks, as these measures depict the operating results that are directly impacted by the Shacks and exclude items that may not be indicative of, or are unrelated to, the ongoing operations of the Shacks. It may also assist investors to evaluate the Company’s performance relative to peers of various sizes and maturities and provides greater transparency with respect to how management evaluates the business, as well as the financial and operational decision-making.

Limitations of the Usefulness of this Measure

Shack-level operating profit and Shack-level operating profit margin may differ from similarly titled measures used by other companies due to different methods of calculation. Presentation of Shack-level operating profit and Shack-level operating profit margin is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Shack-level operating profit excludes certain costs, such as General and administrative expenses and Pre-opening costs, which are considered normal, recurring cash operating expenses and are essential to support the operation and development of the Company’s Shacks. Therefore, this measure may not provide a complete understanding of the Company’s operating results as a whole and Shack-level operating profit and Shack-level operating profit margin should be reviewed in conjunction with the Company’s GAAP financial results. A reconciliation of Shack-level operating profit to Loss from operations, the most directly comparable GAAP financial measure, is set forth below.

 

Fiscal Quarter Ended

 

Fiscal Year Ended

(dollar amounts in thousands)

December 28
2022

 

December 29
2021

 

December 28
2022

 

December 29
2021

Loss from operations

$

(6,314

)

 

$

(6,493

)

 

$

(26,894

)

 

$

(15,853

)

Less:

 

 

 

 

 

 

 

Licensing revenue

 

8,605

 

 

 

7,377

 

 

 

31,216

 

 

 

24,904

 

Add:

 

 

 

 

 

 

 

General and administrative expenses

 

31,750

 

 

 

25,561

 

 

 

118,790

 

 

 

85,996

 

Depreciation and amortization expense

 

19,207

 

 

 

15,610

 

 

 

72,796

 

 

 

58,991

 

Pre-opening costs

 

6,474

 

 

 

4,524

 

 

 

15,050

 

 

 

13,291

 

Impairment and loss on disposal of assets(1)

 

728

 

 

 

370

 

 

 

2,425

 

 

 

1,632

 

Shack-level operating profit

$

43,240

 

 

$

32,195

 

 

$

150,951

 

 

$

119,153

 

 

 

 

 

 

 

 

 

Total revenue

$

238,529

 

 

$

203,256

 

 

$

900,486

 

 

$

739,893

 

Less: Licensing revenue

 

8,605

 

 

 

7,377

 

 

 

31,216

 

 

 

24,904

 

Shack sales

$

229,924

 

 

$

195,879

 

 

$

869,270

 

 

$

714,989

 

 

 

 

 

 

 

 

 

Shack-level operating profit margin(2,3)

 

18.8

%

 

 

16.4

%

 

 

17.4

%

 

 

16.7

%

________________

(1)

For the fourth quarter and fiscal year ended December 28, 2022, this amount includes a non-cash impairment charge of $0.1 million related to one Shack.

(2)

For the fiscal year ended December 28, 2022, Shack-level operating profit margin includes a $1.3 million cumulative catch-up adjustment for gift card breakage income, recognized in Shack sales.

(3)

As a percentage of Shack sales.

SHAKE SHACK INC.

NON-GAAP FINANCIAL MEASURES

(UNAUDITED)

EBITDA and Adjusted EBITDA

EBITDA is defined as Net loss before interest expense (net of interest income), Income tax expense (benefit) and Depreciation and amortization expense. Adjusted EBITDA is defined as EBITDA (as defined above) excluding equity-based compensation expense, deferred lease cost, Impairment loss on the disposal of assets, amortization of cloud-based software implementation costs, as well as certain non-recurring items that the Company does not believe directly reflect its core operations and may not be indicative of the Company’s recurring business operations.

How These Measures Are Useful

When used in conjunction with GAAP financial measures, EBITDA and adjusted EBITDA are supplemental measures of operating performance that the Company believes are useful measures to facilitate comparisons to historical performance and competitors’ operating results. Adjusted EBITDA is a key metric used internally by management to develop internal budgets and forecasts and also serves as a metric in its performance-based equity incentive programs and certain bonus arrangements. The Company believes presentation of EBITDA and adjusted EBITDA provides investors with a supplemental view of the Company’s operating performance that facilitates analysis and comparisons of its ongoing business operations because they exclude items that may not be indicative of the Company’s ongoing operating performance.

Limitations of the Usefulness of These Measures

EBITDA and adjusted EBITDA may differ from similarly titled measures used by other companies due to different methods of calculation. Presentation of EBITDA and adjusted EBITDA is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. EBITDA and adjusted EBITDA exclude certain normal recurring expenses. Therefore, these measures may not provide a complete understanding of the Company’s performance and should be reviewed in conjunction with the GAAP financial measures. A reconciliation of EBITDA and adjusted EBITDA to Net loss, the most directly comparable GAAP measure, is set forth below.

 

Fiscal Quarter Ended

 

Fiscal Year Ended

(in thousands)

December 28
2022

 

December 29
2021

 

December 28
2022

 

December 29
2021

Net loss

$

(11,071

)

 

$

(10,349

)

 

$

(25,967

)

 

$

(10,111

)

Depreciation and amortization expense

 

19,207

 

 

 

15,610

 

 

 

72,796

 

 

 

58,991

 

Interest expense, net

 

373

 

 

 

353

 

 

 

1,518

 

 

 

1,577

 

Income tax expense (benefit)

 

6,780

 

 

 

3,441

 

 

 

1,682

 

 

 

(7,224

)

EBITDA

 

15,289

 

 

 

9,055

 

 

 

50,029

 

 

 

43,233

 

 

 

 

 

 

 

 

 

Equity-based compensation

 

3,171

 

 

 

2,740

 

 

 

13,326

 

 

 

8,703

 

Amortization of cloud-based software implementation costs

 

420

 

 

 

310

 

 

 

1,500

 

 

 

1,245

 

Deferred lease costs(1)

 

(339

)

 

 

8

 

 

 

(2,247

)

 

 

245

 

Impairment and loss on disposal of assets(2)

 

728

 

 

 

370

 

 

 

2,425

 

 

 

1,632

 

Legal settlements

 

(40

)

 

 

(59

)

 

 

6,710

 

 

 

560

 

Gift card breakage cumulative catch-up adjustment

 

 

 

 

 

 

 

(1,281

)

 

 

 

Executive transition costs

 

34

 

 

 

 

 

 

34

 

 

 

179

 

Debt offering related costs(3)

 

 

 

 

(5

)

 

 

 

 

 

231

 

Other income related to the adjustment of liabilities under tax receivable agreement

 

 

 

 

(2

)

 

 

 

 

 

(2

)

ADJUSTED EBITDA

$

19,263

 

 

$

12,417

 

 

$

70,496

 

 

$

56,026

 

 

 

 

 

 

 

 

 

Adjusted EBITDA margin(4)

 

8.1

%

 

 

6.1

%

 

 

7.8

%

 

 

7.6

%

________________

(1)

Reflects the extent to which lease expense is greater than or less than contractual fixed base rent.

(2)

For the fourth quarter and fiscal year ended December 28, 2022, this amount includes a non-cash impairment charge of $0.1 million related to one Shack.

(3)

Costs incurred in connection with the Company’s Convertible Notes, issued in March 2021, including consulting and advisory fees.

(4)

Calculated as a percentage of total revenue, which was $238.5 million and $900.5 million for the fourth quarter and fiscal year ended December 28, 2022, respectively, and $203.3 million and $739.9 million for the fourth quarter and fiscal year ended December 29, 2021, respectively.

SHAKE SHACK INC.

NON-GAAP FINANCIAL MEASURES

(UNAUDITED)

Adjusted Pro Forma Net Income (Loss) and Adjusted Pro Forma Earnings (Loss) Per Fully Exchanged and Diluted Share

Adjusted pro forma net loss represents Net loss attributable to Shake Shack Inc. assuming the full exchange of all outstanding SSE Holdings, LLC membership interests (“LLC Interests”) for shares of Class A common stock, adjusted for certain non-recurring items that the Company does not believe are directly related to its core operations and may not be indicative of recurring business operations.

Contacts

Media:
Meg Davis, Shake Shack

mcastranova@shakeshack.com

Investor Relations:
Melissa Calandruccio, ICR

Michelle Michalski, ICR

(844) SHACK-04 (844-742-2504)

investor@shakeshack.com

Read full story here

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