Fast-casual burger chain Shake Shack is planning to open 80 to 85 new restaurants in 2025, in its bid to reach "at least" 1,500 locations over time, versus its prior target of 450 domestic sites, reports Chain Store Age. The new sites would include about 45 company-operated locations.
Since the original Shack opened in 2004 in New York City, Shake Shack has expanded to over 550 locations system-wide, including over 350 in 33 U.S. states and the District of Columbia, and over 200 international locations.
"We believe that we are just getting started, and see an ample runway for growth ahead,” stated CEO Rob Lynch, who took the reins of the company in March. “We are committed to bringing the world's best fine casual experience to as many guests, team members, and communities as possible. In doing so, we aim to bring pride to everyone in our company and to deliver a strong financial benefit for our team members and shareholders.”
As it expands, Shake Shack is looking to diversify its real estate footprint. In a presentation at the annual ICR investor conference in Orlando, Lynch said smaller format units are in development that could open up new types of real estate opportunities. The chain is also looking to expand in the suburbs with drive-thru sites, reports CSA.
In preliminary fourth quarter results, Shake Shack reported that its total revenue rose 14.8% to $328.7 million. Same-store sales were up 4.3%. Total revenue for the year was $1.3 billion. In fiscal year 2025, Shake Shack expects to grow total revenue by 16% to 18% year-over-year, continue to expand its restaurant margins to approximately 22% and grow adjusted EBITDA by 14% to 20% versus fiscal year 2024.