SHAK Latest Report

Shake Shack's Financial Performance

Shake Shack's total operating revenue in 2024 on December 25 was RMB328,684,000 (approximately US$3,286.84 million), up 15.4% year-on-year from RMB10,468.19 million in 2023. This growth was mainly driven by menu price increases and the opening of 43 new company-owned stores.

Key Financial Data

1. Shake Shack's total operating revenue in 2024 was US$120.7561 million, up US$16.0742 million from 2023, up 15.4% year-on-year.

2. The main reasons for revenue growth include menu price increases contributing about US$6.4 million and the opening of 43 new company-owned stores contributing about US$6.39 million.

3. Shake Shack plans to open new stores in 2024, with an estimated 80% of new stores to open in the second half of the year.

Industry Comparison

1. Overall industry analysis: The fast-food industry generally benefits from increased consumer demand for convenient dining, especially after the pandemic, with many consumers opting for takeout and quick dining options. The catering takeout industry is expected to reach RMB1.67 trillion in 2024, up 11% year-on-year, with overall positive industry performance.

2. Peer evaluation analysis: If Shake Shack's revenue growth is faster than that of its peers, it indicates enhanced market competitiveness. According to the data, Shake Shack not only achieved revenue growth but also continued to expand its stores, showing good market performance.

Summary

Shake Shack's operating revenue performance is good, mainly due to increased market demand, store expansion, and effective marketing strategies. Through the launch of new products and price adjustments, the company successfully attracted more customers and laid a foundation for revenue growth.

Opportunities

1. Continue store expansion to further penetrate the market.

2. Leverage market trends to launch more new products that meet consumer needs.

3. Strengthen marketing activities to enhance brand awareness and customer loyalty.

Risks

1. Intense competition in the fast-food industry may affect market share.

2. Fluctuations in raw material prices may put pressure on profit margins.

3. Economic fluctuations may affect consumer spending and, in turn, operating revenue.