NEW YORK, NY, December 11, 2023 – Shares in the casual dining chain, Shake Shack ($SHAK) jumped nearly 10% today after the company provided a financial outlook for 2024 and announced the departure of its long-time CEO, Randy Garutti. Mr. Garutti will continue to lead Shake Shack as CEO and as an executive Board member until early 2024. The company stated it would retain Mr. Garutti as an advisor through the end of 2024 to ensure a seamless transition.
Mr. Garutti said, “It has been my honor to lead the talented Shake Shack team from our humble beginnings as a hot dog cart in Madison Square Park in New York City to the public company we are today. Together, we have achieved more than anyone dreamed, delighting communities across 18 countries, 33 states and more than 500 Shacks, while targeting to surpass $1.0 billion in revenue this year. I am most proud of the growth opportunities we created for our team members at every level and our shared commitment to uplift and take care of each other, our guests, our communities, our suppliers, and our shareholders.”
During his more than two decades with the company, Mr. Garutti was instrumental in taking the business from a hot dog cart in Madison Park to a “globally-beloved brand with a rich culture” across more than 500 Shacks in 2023.
Financial Outlook
For the Fourth Quarter, ending December 27, 2023, the Company continues to expect total revenue of $276.25 million to $281.75 million, including licensing revenue of $10.25 million to $10.75 million. Same-Shack sales to be up low-single digits year-over-year, Shack-level operating profit margin of approximately 19.0%, approximately 14 domestic Company-operated openings and approximately 5 licensed openings.
For the Fiscal Year 2023, ending December 27, 2023, the Company continues to expect tTotal revenue of approximately $1.08 billion, growing about 20% year-over-year, including Licensing revenue of $40.5 million to $41.0 million.
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 500 locations system-wide, including over 325 in 33 U.S. States and the District of Columbia, and 180 international locations across London, Hong Kong, Shanghai, Singapore, Mexico City, Istanbul, Dubai, Tokyo, Seoul and more.
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— PrismMarketView (@PrismMarketView) December 11, 2023
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