Shake Shack plans monster expansion
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Shake Shack has its sights set on expanding its popular burger chain.
The company has raised its long-term target for company-operated restaurants in the U.S. to “at least” 1,500, Shake Shack said Monday.
That represents a nearly 356 percent increase from the number of burger restaurants it currently operates in the U.S.
Shake Shack is an American fast casual restaurant serving a variety of burgers, hot dogs, fries, chicken nuggets, sandwiches, soft serve and more. (/stock)
Its U.S. footprint will include 329 company-operated locations by the end of fiscal 2024, Shake Shack said. The burger chain also has a presence outside the US, with 200-plus restaurants spread across many international markets.
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“Since the company’s founding in 2004, Shake Shack has been on a continuous journey to improve how we deliver brilliant hospitality to our guests and uplift our team members and our community, along with significant improvements in our profitability and returns,” said CEO Rob Lynch. “But we believe we’re just getting started and we see enough runway for future growth.”
Cheeseburger with tomato and lettuce in a paper wrap at Shake Shack, Walnut Creek, California, August 25, 2024. (Smith Collection/Gado/Getty Images)
The new figure would be a big jump from the 450-restaurant long-term target that Shake Shack first went public with a decade ago.
Shake Shack told FOX Business that it is “looking at 20 priority markets and growing more in existing regions.”
Shake Shack said Monday that it believes total revenue growth over the next three years will be in the “low-teens %” and adjusted EBITDA growth in the “low-to-mid-teens range.”
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The burger chain expects total revenue of $1.45-1.48 billion and adjusted EBITDA of $200-210 million for fiscal 2025, the statement said.
Travelers eat at a Shake Shack restaurant at Newark Liberty International Airport Terminal A on September 28, 2024 in Newark, New Jersey. (Gary Hershorn/Getty Images)
“Our 2025 guidance and outlook for the next three years represent some of the most significant growth in the restaurant industry as we invest and execute against strong long-term opportunities ahead,” said CFO Katie Fogerte.
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Shake Shack is looking to open about 45 company-operated locations and 35-40 franchisees by 2025, according to Shake Shack.
| Ticker | Security | last one | Change | change % |
|---|---|---|---|---|
| Trembling | SHAKE SHAKE | 121.51 | -6.97 |
-5.43% |
The company employs about 12,200 people by the end of 2023.
