CLAIM #407 · Shake Shack Inc (SHAK) · 2023Q1 earnings call · May 4, 2023 · due Dec 31, 2023
“We have reflected a modest degree of slowing into our guidance at the midpoint. If the consumer remains healthy, there's a path to exceed that. However, if there is more material macro, economic contraction than what we're, we're pricing in our guidance, we may miss that.”
Katie Fogertey · CFO
In context
“in the consumer. And then beef, beef, we've continue to say beef is the largest part of uncertainty in our basket this year. We're starting to see it pick up here. We've baked in our views right now as to what that is, but if you're asking me, where the biggest part of uncertainty is on the cost side, to me it's beef. Operator: Our next question comes from Michael Tamas with Oppenheimer and Company. Please proceed with your question. Michael Tamas: Hi. Thank you. Good morning. I wanted to follow-up on the consumer softness comment within your guidance. can you talk about where you're assuming on the sales side of things? You mentioned margins could exceed 20% if there was no softness, but how much of a headwind to sales are you sort of thinking about right now? Thank you. Katie Fogertey: We have reflected a modest degree of slowing into our guidance at the midpoint. If the consumer remains healthy, there's a path to exceed that. However, if there is more material macro, economic contraction than what we're, we're pricing in our guidance, we may miss that. So that's kind of how I would think about the guide on that side. We over-indexed to higher income consumers, we were really encouraged by that 4.8% traffic we generated in the first quarter. And we have to just really kind of talk about white truffle was the most expensive LTO that we've ever launched and we've had very strong success with that. So, what we're seeing today is that, we're kind of that attainable luxury. We're, we're, we're definitely gaining share at the high end. And we hope that that continues, but for planning the business, we think it's prudent to take a balanced approach through the rest of the year. Michael Tamas: Gotcha. Thank you. And then can you talk about what you're seeing from, consumer habits and your drive-throughs and or maybe Kiosks versus sort of like yo”
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SEC filings for SHAK ↗ · Claim quote is verbatim from the 2023Q1 earnings call.