As of September 25, 2024, Shake Shack Inc. reported total assets of $1,675.4 million, an increase from $1,605.9 million as of December 27, 2023. Current assets rose to $310.9 million from $224.7 million, while total liabilities increased to $1,196.4 million from $1,136.5 million. Total stockholders' equity grew to $479.1 million, up from $469.4 million.
For the thirteen weeks ended September 25, 2024, Shake Shack's total revenue reached $316.9 million, a 14.8% increase from $276.2 million in the same period of 2023. Shack sales also rose by 15.1% to $304.9 million, driven by a 4.4% increase in same-Shack sales, attributed to a 4.1% price mix increase and a 0.3% rise in guest traffic. However, total expenses surged by 23.8% to $334.9 million, leading to an operating loss of $(18.0) million, compared to an operating income of $5.7 million in the prior year. The net loss for the quarter was $(11.1) million, a significant decline from a net income of $8.1 million in the same period last year.
For the thirty-nine weeks ended September 25, 2024, total revenue increased by 15.3% to $923.9 million, with Shack sales rising 15.5% to $890.9 million. However, net income fell to $1.5 million from $13.0 million in the previous year, with earnings per share dropping to $0.04 from $0.33.
The company announced the closure of nine underperforming Company-operated Shacks, incurring total expenses of $28.2 million related to these closures. This included $26.4 million in impairment expenses. Shake Shack opened 17 new Shacks during the quarter, including eight Company-operated and nine licensed locations, bringing the total to 552 Shacks system-wide.
Digital sales for the quarter increased by 25.4% to $104.3 million, representing 34.2% of Shack sales. The company also reported a significant increase in cash and cash equivalents, which rose to $310.9 million from $190.0 million year-over-year.
Shake Shack's effective income tax rate for the thirteen weeks ended September 25, 2024, was 25.9%, compared to 6.1% in the prior year. The company continues to manage its liquidity through a revolving credit facility, with no amounts outstanding as of the reporting date. The company is also addressing a material weakness in internal control over financial reporting identified in fiscal 2023, implementing remediation measures to enhance its tax processes.
About Shake Shack Inc.
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