Metairie, Louisiana
Cautionary note on forward-looking statements This presentation contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995 ("PSLRA"), which are subject to known and unknown risks, uncertainties and other important factors that may cause actual results to be materially different. All statements other than statements of historical fact included in this presentation are forward-looking statements, including, but not limited to, expected financial outlook for fiscal 2019, expected Shack openings, expected same- Shack sales growth and trends in Shake Shack Inc.’s (the “Company’s”) op erations. Forward-looking statements discuss the Company's current expectations and projections relating to their financial position, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as "aim," "anticipate," "believe," "estimate," "expect," "forecast," "outlook," "potential," "project," "projection," "plan," "intend," "seek," "may," "could," "would," "will," "should," "can," "can have," "likely," the negatives thereof and other similar expressions. All forward-looking statements are expressly qualified in their entirety by these cautionary statements. You should evaluate all forward-looking statements made in this presentation in the context of the risks and uncertainties disclosed in the Company’s Annual Report on Form 10 -K for the fiscal year ended December 26, 2018, filed with the Securities and Exchange Commission ("SEC"). All of the Company's SEC filings are available online at www.sec.gov, www.shakeshack.com or upon request from Shake Shack Inc. The forward-looking statements included in this presentation are made only as of the date hereof. The Company undertakes no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law. 2
Q3 2019 financial highlights +2.0% +32% +35% YoY YoY Total Revenue Growth in Shack System-wide Sales 2 $157.8M Same-Shack $239.1M Sales 1 $4.2M $23.3M 17 $35.1M Average Adjusted New Domestic Shack-Level Unit Volume 3 EBITDA 4 Company-Operated Operating Profit 4 +9% YoY and Licensed Shacks +17% YoY opened in Q3 1. "Same-Shack Sales" represents Shack sales for the comparable Shack base, which is defined as the number of domestic company-operated Shacks open for 24 full fiscal months or longer. 2. “Shack System - wide Sales” is an operating measure and consists of sales from domestic company -operated Shacks, domestic licensed Shacks and international licensed Shacks. The Company does not recognize the sales from licensed Shacks as revenue. Of these amounts, revenue is limited to Shack sales from domestic company-operated Shacks and licensing revenue based on a percentage of sales from domestic and international licensed Shacks, as well as certain up-front fees such as territory fees and opening fees. 3. "Average unit volume" or "AUV" for any 12-month period consist of the average annualized sales of all domestic company-operated Shacks over that period. AUV is calculated by dividing total Shack sales from domestic company-operated Shacks by the number of domestic company- operated Shacks open during that period. For Shacks that are not open for the entire period, fractional adjustments are made to the number of Shacks open such that it corresponds to the period of associated sales. The measurement of AUV allows the Company to assess changes in 3 guest traffic and per transaction patterns at domestic company-operated Shacks. 4. “Adjusted EBITDA” and “Shack - level Operating Profit” are non -GAAP measures. Definitions of Adjusted EBITDA and Shack-level Operating Profit, the most directly comparable financial measure presented in accordance with GAAP, is included in the appendix of this presentation.
Business highlights Grubhub now fully integrated directly Increased development focus on filling in On track to exceed original targets of into our point of sale, expect some existing markets, build deeper brand at least 200 domestic company- degree of short-term volatility during awareness and extend ability to leverage operated and 120 licensed Shacks the ongoing transition existing resources by the end of 2020 System-wide Sales 1 (TTM) Total Revenue (TTM) System-wide Shack Count Cash Flow from Operations (TTM) $567 Million $839 Million 254 as of the end of the period $96 Million $567 $839 254 CAGR 35% CAGR 34% $96 CAGR 32% CAGR 28% 208 $459 $672 $85 $359 159 $71 $532 $268 $403 $54 114 $191 $295 84 $41 ‘15 ‘16 ‘17 ‘18 Q3 ‘19 ‘15 ‘16 ‘17 ‘18 Q3 ‘19 ‘15 ‘16 ‘17 ‘18 Q3 ‘19 ‘15 ‘16 ‘17 ‘18 Q3 ‘19 TTM TTM TTM as of the end of the period 1. “Shack system - wide sales” is an operating measure and consists of sales from domestic company -operated Shacks, domestic licensed Shacks and international licensed Shacks. The Company does not recognize the sales from licensed Shacks as revenue. Of these amounts, revenue 4 is limited to Shack sales from domestic company-operated Shacks and licensing revenue based on a percentage of sales from domestic and international licensed Shacks, as well as certain up-front fees such as territory fees and opening fees. Note: CAGR for total revenue, cash flow from operations, system-wide Shack count and system-wide sales is the compounded annual growth rate between ‘ 15 and ’ 18.
Domestic development on track to exceed 2020 targets • Opened 11 domestic company-operated Shacks in Q3, on track Domestic company-operated Shacks to open 38 to 40 Shacks for the full year 2019 (At Fiscal Year End) • Plan to open between 40 and 42 new Shacks in 2020, across a strategic mix of urban, freestanding pads, and shopping/lifestyle centers 220 202 to 206 • Focus is shifting to greater existing market penetration to extend 200 our brand, and further leverage our existing infrastructure 180 162 to 164 • Plan to test select new, smaller footprint Shack formats to 160 CAGR 36% increasingly incorporate the digital guest journey and experience 140 124 120 100 90 80 64 60 44 0 ‘15 ‘16 ‘ 17 ‘18 ‘19E ‘20E Sandy, UT Note: CAGR is the compound annual growth rate and represents an estimated range from ’15 to the midpoint of ’20 based on full year 2019 guidance 5
Record year for licensed business with key new market entries • New markets entered in 2019: Mainland China, Mexico, the Licensed Shacks Philippines, and Singapore (At Fiscal Year End) • 6 licensed Shacks opened in Q3, including Mexico City, third Shack in Osaka, Japan and our first in Busan, Korea • Continue to execute on our licensed airport strategy with strong 132 128 to 137 pipeline of domestic and international locations • Expect to open between 24 and 28 net, new Licensed Shacks 108 to 112 in 2019, a raise from prior guidance of between 18 to 20, net CAGR 27% • Plan to open between 20 and 25 net, new Licensed Shacks in 2020; exceeding target of at least 120 Shacks by the end of 84 2020 69 50 40 ‘15 ‘16 ‘ 17 ‘18 ‘19E ‘ 20E Reforma, Mexico City Note: CAGR is the compound annual growth rate and represents an estimated range from ’12 to the midpoint of ’20 based on full year 2019 guidance 6
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