Shake Shack Inc. (NYSE:SHAK) Q2 2023 Earnings Conference Call August 3, 2023 8:00 AM ET

Company Participants

Michael Oriolo - Director-FP&A

Randy Garutti - Chief Executive Officer and Director

Katie Fogertey - Chief Financial Officer

Conference Call Participants

Brian Mullan - Piper Sandler

Michael Tamas - Oppenheimer & Company

Peter Saleh - BTIG

Jake Bartlett - Truist Securities

Brian Vaccaro - Raymond James

David Tarantino - Baird

Andy Barish - Jefferies

John Ivankoe - JPMorgan Chase & Co.

Jim Sanderson - Northcoast Research

Jeff Farmer - Gordon Haskett Research Advisors

Operator

Greetings. Welcome to Shake Shack’s Second Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note this conference is being recorded.

I will now turn the conference over to Michael Oriolo, Director of FP&A. Thank you. you may begin.

Michael Oriolo

Thank you and good morning, everyone. Joining me for Shake Shack's conference call is our CEO, Randy Garutti and CFO, Katie Fogertey. During today's call, we will discuss non-GAAP financial measures, which we believe can be useful in evaluating our performance. The presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with GAAP.

Reconciliations to comparable GAAP measures are available in our earnings release and the financial details section of our Shareholder Letter. Some of today's statements may be forward-looking and actual results may differ materially due to a number of risks and uncertainties, including those discussed in our Annual Report on Form 10-K filed on February 23rd, 2023. Any forward-looking statements represent our views only as of today and we assume no obligation to update any forward-looking statements if our views change. by now, you should have access to our second quarter 2023 Shareholder Letter, which can be found at investor.shakeshack.com in the Quarterly Results section or as an exhibit to our 8-K for the quarter.

As a reminder, during last year's second quarter, our Shack level operating profit saw a benefit of 40 basis points from one-time credits related to our 2022 leadership retreat. During today's call, we will discuss year-over-year Shack level operating profit and cost comparisons excluding these credits in order to provide a more like-for-like comparison.

I will now turn the call over to Randy.

Randy Garutti

Thanks, Mike and good morning, everyone. Our team continued to execute our strategic plan through the second quarter and into July. We grew total revenue by 18% to $272 million with 3% growth in same-Shack sales, average weekly sales of 77,000 and trailing 12-month AUV across our Shacks at $3.9 million.