“We expect other operating expense as a percent of Shack sales in the fourth quarter to be at a similar level to the third quarter.”

In context

“ion to $238.7 million growing about 15% to 17% year-over-year, and Shack level operating profit margin of 16% to 18%. As a reminder pre-COVID, we had shown AWS and margin compression in the fourth quarter versus the third quarter. This fourth quarter we will have the benefit of nearly a full quarter, of new menu pricing to help address some inflationary pressures we are facing. We are planning for high single-digit, inflation in food and paper costs through the rest of the year, led by continued high inflation in dairy, accelerating cost pressures in fryer oil fries and ketchup and low double-digit inflation in paper and packaging. While the inflationary backdrop remains uncertain, we expect de cost the largest portion of our basket to decline by mid- to high single digits year-over-year. We expect other operating expense as a percent of Shack sales in the fourth quarter to be at a similar level to the third quarter. given inflationary pressures on cost to run our restaurants, including higher utilities and R&M expenses and elevated T&E to support new openings. We are committed to improving our profitability driving sales growth and investing ahead of our robust pipeline across the world. The operating environment is likely to remain challenging for some time and we believe we have the right plan in place to elevate our people and drive the long-term growth of Shake Shack as we navigate these uncertain waters. As it pertains to planning G&A and CapEx for the rest of 2022 and into 2023 we have a disciplined but growth minded approach to our investments taking into account a wide range of business scenarios. With consideration for development delays and the unknown macro impacts, we now expect to land t”