Shake Shack Q4 Earnings: Sales Soar 15%, Margins Expand And 85 New Locations On The Menu For 2025

Shake Shack, Inc. SHAK shares are trading higher on Thursday. The company reported fourth-quarter adjusted earnings per share of 26 cents, beating the street view of 24 cents.

Quarterly sales of $328.70 million (up 14.8% year over year), outpacing the analyst consensus estimate of $327.87 million.

System-wide sales rose 13.3% to $500.7 million, while Same-Shack sales increased 4.3%. Shack sales totaled $316.632 million in the quarter, compared with $275.775 million a year ago.

The restaurant-level profit margin was 22.7% of Shack sales, reflecting a 290 basis points improvement compared to the previous year. Adjusted EBITDA increased by 48.6% year-over-year, reaching $46.7 million.

“In 2025, we expect to execute on another great year of mid-teens sales growth, to open approximately 85 Shacks system-wide, to expand our Restaurant-level profit margin to approximately 22%, and drive Adjusted EBITDA growth of 17% – 22%,” said Chief Financial Officer, Katie Fogertey.

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In the quarter under review, the firm opened 19 new Company-operated Shacks, five of which are drive-thrus.

“We opened 76 new Shacks worldwide in 2024 and are excited about our new target Companyoperated footprint of at least 1,500 Shacks,” said Chief Executive Officer Rob Lynch.

The company exited the quarter with cash and equivalents worth $320.714 million. Long-term debt expanded to $246.683 million, compared with $245.636 million a year ago.

Outlook: Shake Shack sees first-quarter sales $326.500 million-$330.900 million versus $331.01 million estimate. For FY25, the company projects net sales of $1.45 billion-$1.48 billion versus $1.456 billion estimate.

Price Action: SHAK shares are trading higher by 10.8% to $123.28 at last check Thursday.

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