Shake Shack has its sights set on massively expanding its popular burger chain.
The company raised its target for company-operated restaurants in America to “at least” 1,500 in the long-term, Shake Shack revealed Monday.
That would mark a nearly 356% increase from the number of burger restaurants it currently runs in the U.S.
Its U.S. footprint included 329 company-operated locations at the end of fiscal 2024, Shake Shack said. The burger chain is also available outside of America, with 200-plus restaurants spread across numerous international markets.
“Since the Company’s founding in 2004, Shake Shack has been on a continuous journey of expanding how we bring Enlightened Hospitality to our guests and elevate our team members and our communities. We are proud to announce that we ended FY2024 with 329 Company-operated Shacks with a marked improvement in our profitability and returns,” CEO Rob Lynch said. “However, we believe that we are just getting started, and see an ample runway for growth ahead.”
The new figure would be a major jump from the 450-restaurant long-term target that Shake Shack outlined as it began publicly trading about a decade ago as well.
Shake Shack told FOX Business it was “looking at 20 priority markets and growing more in its existing regions.”
Shake Shack also said Monday that over the next three years, it believes it can notch total revenue growth in the “low-teens %” and adjusted EBITDA growth “in the range of low to mid-teens %.”
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The burger chain said it anticipates seeing total revenue of $1.45-1.48 billion and adjusted EBITDA of $200-210 million for fiscal 2025 specifically, according to the release.
“Our guidance for 2025 and our outlook for the next three years represents some of the highest growth in the restaurant industry as we invest and execute against our robust long-term opportunities ahead,” CFO Katie Fogertey said.
It is seeking to open about 45 company-operated locations and 35-40 licensed ones during 2025, according to Shake Shack.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| SHAK | SHAKE SHACK | 121.51 | -6.94 | -5.40% |
The company employed nearly 12,200 people at the end of 2023.
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