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Shake Shack Reports Q4 Preliminary Results, Provides FY2025 View

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Shake Shack Inc. (SHAK - Free Report) released its preliminary financial results for the fourth quarter and fiscal year ended Dec. 25, 2024, showcasing notable progress.

SHAK’s Q4 Preliminary Results

Shake Shack ended fiscal 2024 with total revenues of $1.3 billion, including $328.7 million in the fourth quarter. Shack sales contributed $1.2 billion for the year, while licensing revenues accounted for $45 million. System-wide sales reached $1.9 billion in fiscal 2024, with fourth-quarter system-wide sales totaling $500.7 million. Same-Shack sales grew 3.6% for the year and 4.3% in the fourth quarter, indicating strong consumer demand and operational efficiency.

The company achieved a restaurant-level profit margin of 22.7% in the fourth quarter, its highest since 2017, and 21.4% for fiscal 2024. Adjusted EBITDA rose to $175.4 million for the year, a 48% increase year over year in the fourth quarter alone. Shake Shack opened 43 new company-operated Shacks and 33 licensed locations in fiscal 2024, demonstrating its commitment to expansion.

SHAK’s Guidance

For fiscal 2025, Shake Shack forecasts total revenues between $1.45 billion and $1.48 billion, with licensing revenues of $49 million to $51 million. The Zacks Consensus Estimate for fiscal 2025 is currently pegged at $1.44 billion. The company anticipates same-Shack sales growth of 3% and expects a restaurant-level profit margin of approximately 22%. Other key expectations include net income between $45 million and $60 million and Adjusted EBITDA in the range of $200 million to $210 million. Shake Shack plans to open 45 company-operated and 35-40 licensed Shacks in fiscal 2025.

The company’s long-term vision includes expanding its company-operated footprint to more than 1,500 locations. With a target average unit volume of $2.8 million to $4 million and restaurant-level margins between 18% and 24%, Shake Shack is well-positioned for sustainable growth.

The company’s three-year financial growth targets involve total revenue growth of low-teens and restaurant-level profit margins of at least nearly 22%. 

Shares of this Zacks Rank #2 (Buy) company have gained 84.5% in the past year compared with the industry’s rise of 3.9%.

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