Shake Shack Serves Up 16% Growth With Expansion On Deck

This article first appeared on GuruFocus.

Shake Shack (NYSE:SHAK) kept its superb streak alive in Q3, demonstrating that its nifty investments and sharper operations are paying off.

For perspective, Q3 revenues surged nearly 16% to $367.4 million, while adjusted EBITDA climbed 18% year-over-year. CEO Rob Lynch said the company is playing the long game and investing more in building a stronger brand later.

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We're making the necessary strategic investments today that set us up for long-term success, he said, highlighting a new Chief Brand Officer, fresh marketing campaigns, and more creative menu additions.

Operationally, Shake Shack is getting more streamlined. Lynch said turnover is down and productivity is up thanks to better-trained teams and a new labor model that's cutting hours without hurting service. The chain also plans to open 55 to 60 new locations next year as it leans into expansion.

CFO Katherine Fogertey reaffirmed full-year revenue guidance of about $1.45 billion with margins near 23%. Despite some pressure on lower-income diners, Shake Shack is confident its blend of efficiency, value, and brand love will keep customers and growth coming back for more.

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