Shake Shack reports Q2 sales increase

by MEAT+POULTRY Staff
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 ShakeShack
New store openings and increased same-store sales are credited for the increase. 
 
NEW YORK – Shake Shack Inc. reported a 38.3 percent sales increase to $64.4 million for the second quarter ended June 29 from $46.6 million for the second quarter of 2015. The company credits the increase to the opening of new stores as well as same-store sales growth, which increased 4.5 percent in the second quarter. Total revenue increased 37.2 percent to $66.5 million from $48.5 million in 2015.
 
Net income for the quarter was $3.3 million, or $0.14 per diluted share, compared to net income of $1.1 million, or $0.08 per diluted share, for the same period last year.

“For the second quarter, we increased revenue over 2015 by 37.2 percent, opened four new company-operated Shacks domestically, three licensed Shacks and grew comps by 4.5 percent, on top of an impressive 12.9 percent increase last year,” Randy Garutti, CEO of Shake Shack, said in a release. “We continue to execute on our growth strategy, while delivering industry-leading AUVs and, in this past quarter, our 30.8 percent Shack-level operating profit margin set a new record. Innovating around our core menu continues to be a key driver of our success with the addition of our Chick’n Shack, launched in January, and our most recent LTO, the Bacon Cheddar Shack, launched in June.”

During the second quarter, Shake Shack opened four domestic company-operated restaurants or Shacks, including one in the Fashion Centre at Pentagon City, two Shacks in New York and the company’s first location in Minnesota at the Mall of America. In addition, a licensed Shake Shack was opened in the T-Mobile Arena in Las Vegas and two international locations were opened in Japan and Bahrain.

Garutti continued, “Domestically, given favorable development tailwinds in our 2016 pipeline, we have increased guidance to open 18 domestic company-operated Shacks this year. Next week we will reach a milestone of our 100th Shack opening worldwide. We have never been more excited about the opportunities ahead of us and are committed to investing in our team as we envision and execute the next 100 great Shacks.”

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