“We're targeting another year of restaurant margin expansion as we guide Shack level operating profit margins to 20% to 21%, as we focus on driving sales and delivering on continued operational improvements.”

In context

“k end weighted, and Same Shack sales to grow by low-single digits with low-single digit realized price. Our pricing plans for this year are modest and consistent with our pre-COVID pricing patterns of low-single digits. We recently increased price in our digital channels and plan to take additional menu price in areas with outsized labor inflation such as California. But for the majority of our Shacks, we plan to increase in-Shack menu prices by about 2.5% this year. We guide full year license revenue of $45 million to $47 million, up 11% to 15% year-over-year, as we factor in a degree of continued macroeconomic and geopolitical risks. The Middle East and China together were approximately 40% of our total license units and comprised a material amount of our 40 projected openings for 2024. We're targeting another year of restaurant margin expansion as we guide Shack level operating profit margins to 20% to 21%, as we focus on driving sales and delivering on continued operational improvements. The low end of this guidance range while nearly flat year-over-year contemplates a weaker sales backdrop, a worsening staffing backdrop, and the potential for even more elevated inflationary pressures in beef and other areas of the supply chain. We guide 2024 G&A to $139 million to $142 million, which is up 11% to 14% year-over-year, driven by a planned large increase in advertising spending to drive greater brand awareness and sales, while still having a disciplined approach to run rate G&A. We're increasing spend on areas of marketing where we have high visibility in our returns and will continue to closely monitor and adjust accordingly with changes to our business. We expect approximately $18 million of equity based compensation expense with about $17 million in G&A. We guide full yea”