Skip to main content

Shake Shack plots massive expansion

Glendale, California, United States – April 1, 2019: Shake Shack sign. Entrance view. Shake Shack logo. Shake Shack is a trendy food chain known for quality. American fast casual restaurant chain. ; Shutterstock ID 1356484064
Shake Shack expects to open about 80 to 85 new restaurants this year, including 45 company-operated locations.

Shake Shack is planning to more than quadruple its domestic restaurant count. 

The fast-casual burger chain said it now sees the potential for its company-operated footprint to reach “at least” 1,500 locations over time, versus its prior target of 450 domestic sites. Shake Shack expects to open about 80 to 85 new restaurants this year, including 45 company-operated locations. Licensed openings are expected to range from 40 to 45 openings.

Since the original Shack opened in 2004 in New York City, Shake Shack has expanded to over 550 locations system-wide, including over 350 in 33 U.S. states and the District of Columbia, and over 200 international locations across London, Hong Kong, Shanghai, Singapore, Mexico City, Istanbul, Dubai, Tokyo, Seoul and more.

"We believe that we are just getting started, and see an ample runway for growth ahead,” stated CEO Rob Lynch, who took the reins of the company in March. “We are committed to bringing the world's best fine casual experience to as many guests, team members, and communities as possible. In doing so, we aim to bring pride to everyone in our company and to deliver a strong financial benefit for our team members and shareholders.”

Advertisement - article continues below
Advertisement

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.

[READ MORE: Shake Shack launches sidewalk robot delivery in Los Angeles]

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.

X
This ad will auto-close in 10 seconds