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Shake Shack is serious about expanding its popular burger chain.
The company has increased its goal of company-operated restaurants in the United States to “at least” 1,500 in the long term, Shake Shack said on Monday.
That would mark a nearly 356% increase from the number of burger restaurants currently operating in the US
Shake Shack is an American fast food restaurant that offers a variety of burgers, hot dogs, fries, chicken nuggets, sandwiches, soft foods and more. (/Stock)
Its American footprint includes 329 company-operated locations by the end of fiscal 2024, Shake Shack said. The burger chain has a presence outside of America, with more than 200 restaurants spread across many markets around the world.
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“Since the Company’s founding in 2004, Shake Shack has been on a continuous journey to grow the way we deliver Enlightened Hospitality to our guests and uplift our team members and our communities. We are proud to announce that we ended FY2024 with 329 Company-operated shacks. with significant improvements in our profitability and and returns,” said CEO Rob Lynch. “However, we believe we are just getting started, and we see ample runway for future growth.”
Cheeseburger with tomato and lettuce in a wrap at Shake Shack, Walnut Creek, California, Aug. 25, 2024. (Smith Collection/Gado/Getty Images)
The new figure would be a big jump from the long-term goal of 450 restaurants that Shake Shack outlined when it went public a decade ago.
Shake Shack told FOX Business that it’s “looking at the 20 most important markets and growing more in its existing regions.”
Shake Shack also said Monday that over the next three years, it believes it will not be able to measure revenue growth in the “low-teen %” and adjust EBITDA growth in the “low to mid-teen % range.”
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The burger chain said it expects to see total revenue of $1.45-1.48 billion and adjusted EBITDA of $200-210 million in fiscal 2025, according to the release.
Travelers eat at a Shake Shack restaurant in Terminal A at Newark Liberty International Airport on September 28, 2024, in Newark, New Jersey. (Gary Hershorn/Getty Images)
“Our 2025 guidance and our vision for the next three years represent the highest growth in the restaurant industry as we invest in and capitalize on our strong long-term opportunities,” said CFO Katie Fogertey.
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It wants to open about 45 company-operated and 35-40 licensed locations by 2025, according to Shake Shack.
| A ticker | Security | Finally | Change | change % |
|---|---|---|---|---|
| SHAK | SHAKE SHACK | 121.24 | -7.21 |
-5.61% |
The company employed approximately 12,200 people by the end of 2023.
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