Shake Shack Inc. (NYSE:SHAK) Q2 2024 Earnings Conference Call August 1, 2024 8:00 AM ET

Company Participants

Michael Oriolo – Vice President, FP&A and Investor Relations
Rob Lynch – Chief Executive Officer
Katie Fogertey – Chief Financial Officer

Conference Call Participants

Brian Mullan – Piper Sandler
Lauren Silberman – Deutsche Bank
Brian Vaccaro – Raymond James
Michael Tamas – Oppenheimer & Company
Andrew Charles – TD Cowen
Christine Cho – Goldman Sachs
Brian Harbour – Morgan Stanley
Peter Saleh – BTIG
Jake Bartlett – Truist Securities
Sara Senatore – Bank of America
Daniel Guglielmo – Capital One Securities
Jeff Farmer – Gordon Haskett
David Tarantino – Baird
Andy Barish – Jefferies
Sharon Zackfia – William Blair
Jim Sanderson – North Coast Research
Chris O’Cull – Stifel

Operator

Greetings. Welcome to Shake Shack Second Quarter 2024 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, Vice President, FP&A and Investor Relations. Thank you. You may begin.

Michael Oriolo

Thank you and good morning everyone. Joining me for Shake Shack's conference call is our CEO, Rob Lynch; 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 29, 2024. 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 2024 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.

I will now turn the call over to Rob.

Rob Lynch

Thank you, Mike, and good morning everyone. I'm very excited to be here today speaking to you as the new CEO of Shake Shack. Thanks to all of you for joining us on the call today. First, I want to take a moment to recognize Randy Garutti for leading Shake Shack since the inception and for his many accomplishments in building this great brand. I also want to thank him for how he thoughtfully transitioned the CEO role to me. His wise counsel and generous commitment to my success has absolutely helped me get off to a fast start. Speaking of fast starts, I'm happy to share with you that Shake Shack had a strong second quarter, growing Same-Shack sales by 4%, expanding restaurant level profit margin by 100 basis points to 22%, the strongest quarterly results since 3Q 2019 and growing adjusted EBITDA by 27%. There's great momentum in the business and that momentum has continued into July where we finished the month up 4.1% on Same-Shack sales.