Shake Shack reported financial results for the fourth quarter and fiscal year ended December 30, 2015.
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Q4 total revenue, which includes Shack sales and licensing revenue, increased 46.8% to $51.1 million in the fourth quarter of 2015, from $34.8 million for the fourth quarter of 2014.
Shack sales for the fourth quarter of 2015 were $49.3 million, an increase of 49.2% from $33.1 million in the same quarter last year due primarily to the opening of new Shacks, robust sales at mature Shacks, as well as same-Shack sales growth. Licensing revenue was $1.7 million for both the fourth quarter of 2014 and 2015.
Licensing revenue from the eight new international licensed Shacks opened during the year were offset by lower licensing revenue from Shacks in the Middle East and the negative impact from foreign currency exchange rates.
Q4 same-Shack sales increased 11.0% for the fourth quarter of 2015, on a calendar basis, versus 7.2% growth in the fourth quarter last year. The comparable Shack base includes those restaurants open for 24 months or longer. For the fourth quarter of 2015, the comparable Shack base included 21 Shacks versus 13 Shacks for the fourth quarter of 2014.
Average weekly sales for domestic company-operated Shacks was $89,000 for the fourth quarter of 2015 compared to $85,000 for the same quarter last year, a 4.7% increase, primarily due to traffic growth, increased menu prices and favorable shifts in sales mix from menu innovation.
Shack-level operating profit, a non-GAAP measure, increased 88.1% to $13.9 million for the fourth quarter of 2015 from $7.4 million in the same quarter last year.
As a percentage of Shack sales, Shack-level operating profit margins increased 590 basis points to 28.2% as a result of 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 $7.7 million for the fourth quarter of 2015 from $6.0 million in the same quarter last year.
Adjusted EBITDA, a non-GAAP measure, increased 104.5% to $9.9 million. As a percent of total revenue, adjusted EBITDA margins increased approximately 540 basis points to 19.3% compared to 13.9% for the year ago period.
Net income was $1.2 million, or $0.07 per diluted share, for the fourth quarter of 2015, compared to a net loss of $(1.4) million, or $(0.05) per diluted unit, for the same period last year.
Adjusted pro forma net income, a non-GAAP measure, was $2.9 million, or $0.08 per fully exchanged and diluted share during the fourth quarter of 2015, compared to an adjusted pro forma net loss of $(0.3) million, or $(0.01) per diluted share during the fourth quarter of 2014.
Fiscal year 2015
Shake Shack total revenue increased 60.8% to $190.6 million for fiscal 2015, from $118.5 million for fiscal 2014. The growth in Shack sales was primarily driven by the opening of 13 new domestic company-operated Shacks, as well as same-Shack sales growth.
Shack sales for fiscal 2015 were $183.2 million, an increase of 63.5% from fiscal 2014. Licensing revenue for the fiscal year was $7.4 million, an increase of 13.6% from the prior year.
ame-Shack sales increased 13.3% during fiscal year 2015 versus 4.1% growth in the prior year. For fiscal 2015, the comparable Shack base included 21 Shacks, compared to 13 Shacks for fiscal 2014.
Shack-level operating profit, a non-GAAP measure, increased 96.8% to $52.9 million for fiscal 2015 from $26.9 million for fiscal 2014.
Adjusted EBITDA, a non-GAAP measure, increased 117.7% to $41.1 million from $18.9 million for the fiscal year. As a percent of total revenue, adjusted EBITDA increased roughly 570 basis points to 21.6% compared to 15.9% for the year ago period.
Net loss was $8.8 million, or $0.65 per diluted share, for fiscal 2015, compared to net income of $2.1 million, or $0.07 per diluted unit, for the same period a year ago.
Adjusted pro forma net income, a non-GAAP measure, was $12.0 million, or $0.32 per fully exchanged and diluted share for fiscal 2015, compared to $4.7 million, or $0.13 per fully exchanged and diluted share for fiscal 2014.
For the fiscal year ending December 28, 2016, the company is providing the following financial outlook: total revenue between $237 million and $242 million; same-Shack sales growth between 2.5% and 3.0%. ■