Shake Shack plots massive expansion
As it expands, Shake Shack is looking to diversify its real estate footprint. In a presentation at the annual ICR investor conference in Orlando, Lynch said smaller format units are in development that could open up new types of real estate opportunities. The chain is also looking to expand in the suburbs with drive-thru sites.
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In preliminary fourth quarter results, Shake Shack reported that its total revenue rose 14.8% to $328.7 million. Same-store sales were up 4.3%. Total revenue for the year was $1.3 billion.
“Our guidance for 2025 and our outlook for the next three years represents some of the highest growth in the restaurant industry as we invest and execute against our robust long-term opportunity ahead,” stated CFO Katie Fogertey.
In fiscal year 2025, Shake Shack expects to grow total revenue by 16% to 18% year-over-year, continue to expand its restaurant margins to approximately 22% and grow adjusted EBITDA by 14% to 20% versus fiscal year 2024.