Shake Shack Inc. (NYSE:SHAK) Q1 2020 Earnings Conference Call - Final Transcript

May 04, 2020 • 05:00 pm ET


Shake Shack Inc. (NYSE:SHAK) Q1 2020 Earnings Conference Call - Final Transcript


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Greetings, and welcome to the Shake Shack first-quarter 2020 earnings call. [Operator instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. Rik Powell, SVP of Finance.

Please go ahead.

Rik Powell

Thank you, Hector, and good evening, everybody. Joining me for Shake Shack's 2020 first-quarter conference call is our CEO Randy Garutti; and President and CFO Tara Comonte. During today's call, we will 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 and the appendix to our supplemental materials. Some of today's statements may be forward-looking, and actual results may differ materially due to a number of risks and uncertainties, including those discussed in our annual report on Form 10-K filed on February 24, 2020, and two current reports on Form 8-K filed on March 17 and April 17, 2020, respectively. Any forward-looking statements represent our views only as of today, and we assume no obligation to update any forward-looking statement if our views change. By now, you should have access to our first-quarter 2020 earnings release, which can be found at in the News section.

And additionally, we have posted our first-quarter 2020 supplemental earnings materials, which can be found in the Events & Presentations section on our site or as an exhibit to our 8-K for the quarter. In light of the ongoing environment, our supplemental materials also include certain financial information related to the current quarter. I'll now turn the call over to Randy.

Randy Garutti

Thanks, Rik, and good evening, everyone. We hope you, your families and our entire Shake Shack community are all staying safe and healthy during this crisis. I've had the privilege of leading this company through many challenging and many incredible moments. And I think we'd all agree this has been an unprecedented test for our world and for our teams.

Our message across the company has been consistent: to lead with hope while acting on reality and to make the necessary choices today to ensure our strength and growth continue for years to come. We're confident we've increasingly taken those steps since this crisis began, and we're pivoting the business now to be sure Shake Shack captures the opportunity to evolve into an even stronger company as we come out the other side. Today, we'll briefly talk about Q1 which, prior to the impact of the COVID-19 outbreak, was in line with our expectations and previous guidance. We'll focus more on Shake Shack today, specifically our teams and the important positive momentum of our operating models and digital initiatives.

I want to begin by talking about where the company is right now, nearly halfway through our second quarter. Sales have been steadily increasing every week from their challenging lowest point at the end