Shake Shack’s same-store sales up 4.3% with price increasesShake Shack’s same-store sales up 4.3% with price increases

Shake Shack balanced traffic challenges during the fourth quarter of 2024 with increased menu prices. For the fourth quarter ended Dec. 25, the New York City-based fast-casual burger chain reported 14.8% revenue growth, driven by 4.3% same-store sales.

In 2024, the company saw 3.6% same-store sales growth overall despite nearly flat traffic trends in the face of macroeconomic headwinds. These positive numbers were largely boosted by store development growth and increased menu prices over the quarter. Shake Shack chief financial officer Katie Fogerty said during Thursday’s earnings call that the company increased pricing by 4.5% during the fourth quarter to address “delivery cost headwinds.” In March, the company plans to roll some of that back and end the first quarter 2025 with 3% overall price increases.

Moving into 2025, Shake Shack outlined six new strategic priorities on its journey to operating 1,500 Shake Shacks across the United States (more than four times the brand’s current size). The first priority is people, and Shake Shack CEO Rob Lynch outlined two programs to increase internal promotions by 10% in 2025: Shift Up (an intensive development program for “high-performing hourly employees”) and Lead to Succeed (an intensive training program for new managers).

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The second strategic priority is optimization of restaurant operations, which has been improved by piloting a new staffing and schedule labor model that was rolled out in 2024.

Shake Shack also wants to increase guest frequency, which it said will be aided by in-store personalized marketing and menu innovation. Moving forward, menu innovation will largely be centered on a new kitchen innovation center, “which will provide a launch pad for innovation largely focused on delivering improved service times and convenience for our guests,” according to Lynch.

“We are excited to drive guest frequency and overall check through menu innovation,” Lynch said. “In 2025, you will see us increase product tests to drive incremental visits and mix as well as invest in guest recognition, which will allow us to extend even more hospitality by connecting our app- and web-known guests with the in-Shack experience with the kiosk. We expect this to be a huge unlock for Shake Shack and allow us to connect the dots to provide targeted offers to our guests.”

In the year ahead, Shake Shack’s remaining priorities are to reduce net build costs of new Shake Shacks to continue the momentum of new store openings (including the new drive-thru prototype designed to improve speed), expand the company’s licensing business, and “invest in long-term strategic capabilities” to accelerate long-term growth.

Related:Wingstop tests a new kitchen operating platform

For the fourth quarter ended Dec. 25, Shake Shack reported revenues of $328.7 million, up 14.8% from the same quarter last year. Net income was $9.3 million, or 22 cents per share, as compared with $7.3 million or 18 cents per share, in the same quarter the year prior.

In the fourth quarter of 2024, Shake Shack opened 28 new company-owned and licensed stores, ending the year with more than 570 locations globally.

Contact Joanna at [email protected]