Shake Shack reported financial results for the second quarter ended July 1, 2015. Total revenue, which includes Shack sales and licensing revenue, increased 74.7% to $48.5 million from $27.7 million for Q2 2014.
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Shack sales for the second quarter of 2015 were $46.6 million, an increase of 77.9%, from $26.2 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 second quarter was $1.9 million, an increase of 20.1% from $1.6 million in the same quarter last year, due primarily to the opening of new international licensed Shacks.
Same-Shack sales increased 12.9% for the second quarter of 2015, on a calendar basis, versus 4.5% growth in the second quarter last year.
The comparable Shack base includes those restaurants open for 24 months or longer. For the second quarter of 2015, the comparable Shack base included 16 Shacks versus 10 Shacks for the second quarter of 2014.
Average weekly sales for domestic company-operated Shacks were $102,000 for the second quarter of 2015 compared to $95,000 for the same quarter last year, a 7.4% increase, primarily due to increased menu prices, favorable shifts in sales mix from menu innovation and strong performance from several Shacks opened in the latter half of fiscal 2014, including Las Vegas and Chicago.
Shack-level operating profit, a non-GAAP measure, increased 110.9% to $14.1 million for the second quarter of 2015 from $6.7 million in the same quarter last year.
As a percentage of Shack sales, Shack-level operating profit margins increased 470 basis points to 30.3% as we experienced higher flow through from lower than anticipated food costs and the leveraging of labor and other operating expenses on the increased Shack sales.
General and administrative expenses increased to $6.1 million for the second quarter of 2015 from $3.6 million in the same quarter last year.
As a percentage of total revenue, general and administrative expenses decreased to 12.5% for the second quarter of 2015 from 13.1% in the second quarter last year, despite increased costs associated with becoming a public company and incremental stock-based compensation expense related to stock options granted in connection with the Company's initial public offering.
Adjusted EBITDA, a non-GAAP measure, increased 136.5% to $11.2 million. As a percent of total revenue, adjusted EBITDA margins increased approximately 600 basis points to 23.1% compared to 17.1% for the year ago period.
Net income was $1.1 million, or $0.08 per diluted share, for the second quarter of 2015, compared to net income of $1.9 million, or $0.06 per diluted unit, for the same period last year.
Adjusted pro forma net income, a non-GAAP measure, increased 209.6% to $3.4 million, or $0.09 per fully exchanged and diluted share during the second quarter of 2015, compared to $1.1 million, or $0.03 per diluted share during the second quarter of 2014. ■