James Sanderson's questions to Shake Shack Inc (SHAK) leadership • Q3 2024
Question
James Sanderson of Northcoast Research asked about the accelerated unit growth for 2025 and whether to view the absolute number or percentage growth as the go-forward run rate.
Answer
CEO Rob Lynch stated the company is 'really bullish' on the cash-on-cash returns from new company-operated Shacks, driven by strong sales, margin productivity, and lower build costs. He confirmed they will continue to increase development in 2025 and beyond, and are investing in the internal infrastructure for real estate and construction to support this accelerated growth.