Shake Shack CEO Randy Garutti said Monday that the company continued its recovery journey in Q4, which triggered a 2.2% share increase Tuesday for the New York-based company.

"We are pleased to see trends in the fourth quarter 2020 continue to improve with Average Weekly Sales of $62,000 compared to $58,000 in the third quarter 2020, and $45,000 in the second quarter 2020," he said in a company press release.

Same-store sales declined 17.4% compared to 31.7% in the third quarter of 2020 and down 49% in the second quarter of 2020. Even better news was that same-store sales at suburban locations were approximately flat compared to the prior year, Garutti said.

"We continue to transform the Shack experience by leveraging our expanded digital capabilities and the strategic investments we've made across our native web and app channels," he said. "Most recently, we've launched curbside pickup and have begun testing delivery through our Shack app at several locations in the Miami area to support a broader rollout in 2021.

"We believe these digital investments to be a critical differentiator for our business, creating the opportunity to drive greater engagement and frequency with both new and existing guests."

Growth is in full swing

Garutti said the chain was focused on growing its footprint and has plans to open 35 to 40 domestic company-operated units in 2021 and 45 to 50 in 2022. Each will offer digital pre-ordering and pick-up capabilities.

"We also plan to build our first drive-thru Shack later in 2021," Garutti said. "Our evolving designs focus on enhancement of the guest experience by implementing friction-reduced order and pickup areas across all formats."

Additionally, Shake Shack expects to open 15-to-20 licensed Shacks in fiscal 2021 and 20-to-25 in 2022.

Preliminary unaudited results for Q4, ending Dec.30, 2020, included:

  • Total revenue in the fourth quarter 2020 increased 4% to $157.5 million versus the same period last year, showing sequential improvement when compared to a decline of 17.3% in the third quarter 2020.
  • Shack Sales increased 4.6% to $152.5 million versus the same period last year.
  • Same-Shack sales continued to sequentially improve every month since fiscal April, down 17.4% in the fourth quarter 2020 versus the same period last year, compared to down 31.7% in the third quarter 2020.
  • Suburban same-store sales were flat, compared to down 16% in the third quarter 2020.
  • Urban same-Shack sales were down 31% and within this, Manhattan was down 49%, compared to urban same-store sales down 43% in the third quarter 2020, with Manhattan down 60% in the third quarter 2020.
  • Licensed revenue in the fourth quarter 2020 decreased 10.6% to $5 million, showing sequential improvement when compared to a decline of 23.8% in the prior quarter.
  • The company opened 13 stores, comprised of eight domestic company-operated Shacks and five licensed Shacks.
  • Two domestic company-operated Shacks and 17 licensed Shacks remain temporarily closed compared to two and 16 at the end of fiscal October 2020.
  • Nearly half of the domestic company-operated Shacks had open dining rooms with varying capacity restrictions, compared to approximately 80% at the end of fiscal October 2020.
  • Total revenue for the fiscal year ended December 30, 2020 decreased 12.1% to $522.9 million versus the prior year. This decrease is inclusive of the favorable impact of the 53rd week in the fourth quarter 2020, which resulted in incremental revenue of $11.1 million. Excluding the 53rd week, total revenue in fiscal year 2020 decreased 13.9%.

Yearly results included

  • Shack sales for the fiscal year decreased 11.9% to $506.3 million versus the prior year.
  • Same-Shack sales declined 27.8%.
  • Licensed revenue decreased 16.9% to $16.5 million versus the prior year. This decrease is inclusive of the favorable impact of the 53rd week in the fourth quarter 2020, which resulted in incremental licensed revenue of $0.4 million. Excluding the 53rd week, licensed revenue in fiscal year 2020 decreased 18.9%.
  • The company opened 36 units, comprised of 20 domestic company-operated Shacks and 16 licensed Shacks.

Copyright © 2021 Networld Media. All rights reserved., source Industry News