Shake Shack Inc (SHAK, Financial) released its third-quarter earnings for 2023 on November 2, 2023. The company reported a significant increase in total revenue, which rose by 21.2% to $276.2 million compared to the same period in 2022. This included $265.0 million of Shack sales and $11.2 million of Licensing revenue.
Financial Highlights
The company's system-wide sales also saw a substantial increase, rising by 24.3% to $438.9 million. Same-Shack sales were up by 2.3% compared to 2022. Operating income was reported at $5.7 million, a significant improvement from an operating loss of $4.8 million in 2022. The company also reported a Shack-level operating profit of $54.0 million, or 20.4% of Shack sales.
Shake Shack Inc (SHAK, Financial) reported a net income of $8.1 million, a stark contrast to the net loss of $2.3 million in 2022. Adjusted EBITDA was $35.8 million, up 80.7% versus 2022. The net income attributable to Shake Shack Inc was $7.6 million, or earnings of $0.19 per diluted share.
Expansion and Growth
In Q3 2023, Shake Shack Inc (SHAK, Financial) opened 10 new domestic Company-operated Shacks and 15 new licensed Shacks, including locations in the Bahamas and China. This expansion is a testament to the company's growth strategy and its commitment to increasing its market presence.
Financial Tables Summary
The company's balance sheet shows a healthy increase in total assets from $1.49 billion in December 2022 to $1.56 billion in September 2023. The total liabilities also increased from $1.07 billion to $1.12 billion in the same period. The company's cash and cash equivalents stood at $190.02 million as of September 27, 2023.
The company's income statement shows a significant improvement in net income, from a loss of $2.3 million in Q3 2022 to a profit of $8.1 million in Q3 2023. The total revenue increased by 21.2% to $276.2 million, driven by an increase in both Shack sales and licensing revenue.
Looking Ahead
Shake Shack Inc (SHAK, Financial) has demonstrated strong performance in Q3 2023, with significant growth in revenue and net income. The company's strategic expansion into new markets and the consistent growth in Shack sales and licensing revenue indicate a positive outlook for future performance.
Explore the complete 8-K earnings release (here) from Shake Shack Inc for further details.
