Shake Shack reported financial results for the first quarter ended March 30, 2016.
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Total revenue, which includes Shack sales and licensing revenue, increased 43.3% to $54.2 million in the first quarter of 2016, from $37.8 million for the first quarter of 2015.
Shack sales for the first quarter of 2016 were $52.2 million, an increase of 44.7% from $36.0 million in the same quarter last year, due primarily to the opening of new Shacks, as well as same-Shack sales growth.
Licensing revenue for the first quarter was $2.0 million, an increase of 14.3% from $1.8 million in the same quarter last year, due primarily to the opening of new licensed Shacks, offset by lower revenue from Shacks located primarily in the Middle East and the unfavorable impact of foreign exchange rate fluctuations.
Same-Shack sales increased 9.9% for the first quarter of 2016 versus 11.7% growth in the first quarter last year. The comparable Shack base includes those restaurants open for 24 months or longer.
For the first quarter of 2016, the comparable Shack base included 20 Shacks versus 13 Shacks for the first quarter of 2015.
Average weekly sales for domestic company-operated Shacks were $90,000 for the first quarter of 2016 compared to $89,000 for the same quarter last year, a 1.1% increase, primarily due to robust traffic growth, menu price increases and solid performance across the existing Shack base, including in new markets.
Shack-level operating profit, a non-GAAP measure, increased 58.6% to $14.7 million for the first quarter of 2016 from $9.3 million in the same quarter last year.
As a percentage of Shack sales, Shack-level operating profit margins increased 250 basis points to 28.2% as we experienced higher flow through from lower than anticipated food costs and the leveraging of other operating expenses on the increased Shack sales.
General and administrative expenses decreased to $6.9 million for the first quarter of 2016 from $18.4 million in the same quarter last year.
As a percentage of total revenue, general and administrative expenses decreased to 12.7% for the first quarter of 2016 from 48.6% in the first quarter last year, primarily due to non-recurring expenses incurred in the prior year, including $12.8 million of non-recurring compensation expenses and $0.6 million of IPO-related expenses.
Adjusted EBITDA, a non-GAAP measure, increased 54.4% to $10.8 million. As a percent of total revenue, adjusted EBITDA margins increased approximately 140 basis points to 19.9% compared to 18.5% for the year ago period.
Net income was $1.5 million, or $0.07 per diluted share, for the first quarter of 2016, compared to net loss of $12.7 million, or $1.06 per diluted share, for the same period last year.
Adjusted pro forma net income, a non-GAAP measure, increased 114.4% to $2.8 million, or $0.08 per fully exchanged and diluted share during the first quarter of 2016, compared to $1.3 million, or $0.04 per diluted share during the first quarter of 2015. ■