Shake Shack Inc. (NYSE:SHAK) Q2 2017 Earnings Conference Call - Final Transcript

Aug 03, 2017 • 05:00 pm ET


Shake Shack Inc. (NYSE:SHAK) Q2 2017 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and thank you for standing by. Welcome to the Shake Shack Second Quarter 2017 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded today, August 3, 2017.

On the call today from Shake Shack we have Randy Garutti, Chief Executive Officer; Tara Comonte, Chief Financial Officer; and Josh Omin, Vice President of Finance and Investor Relations.

And now, I'll turn the conference over to Mr. Josh Omin. Please go ahead, sir.

Josh Omin

Thank you, operator, and good evening to everyone. By now, you should all have access to our second quarter 2017 earnings release. If not, they can be found at in the Investor Relations section.

Before we begin our formal remarks, I need to remind everyone that our discussions today will include forward-looking statements. These forward-looking statements are not guarantees of future performance and therefore you should not put undue reliance on them.

Actual results may differ materially from those indicated by these forward-looking statements due to a number of risks and uncertainties, including those in the Risk Factors section of our Annual Report on Form 10-K, which was filed on March 13, 2017. Additionally, any forward-looking statements represent our views only as of today, and we assume no obligation to update any forward-looking statements if our views change.

During today's call, we will also discuss non-GAAP financial measures, which we believe can be useful in evaluating our performance. The presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with GAAP. Reconciliations to comparable GAAP measures are available in our earnings release.

Now I'd like to turn the call over to Randy.

Randall J. Garutti

Thank you, Josh, and good evening to everyone on the call today. Now more than halfway through 2017 Shake Shack continues to grow profitably and at a rapid pace. The total revenue growth of 37% to $91.3 million in the second quarter. And adjusted EBITDA growth of over 36% to $19.4 million in the same time period.

We're continuing to successfully expand Shake Shack both domestically and internationally focusing more than ever on technology enablement and throughput initiatives, personalized and targeted marketing and even more dynamic menu innovation, all while staying true to our mission to stand for something good.

With each new Shack we open our overarching goal remains unchanged to be a delevered community gathering place for your hometown, offering classic American favorites may with premium ingredients an unparalleled experience that connects with our guests wherever they are and whenever they want their Shack. And it's rapidly shifting retail moment we're well-positioned to continue the evolution of what it means to experience Shake Shack.

This is the moment we've heard of even our guest connection to the in Shack experience while developing new digital channels both and out of Shack to further our opportunity. This quarter we opened four domestic company operate Shacks and three net license Shacks. For the full-year 2017 we remain on track