“We have plans in place around development, training and operations as we target lowering our preopening expenses by about 10% per Shack in 2024 versus this year's level.”

In context

“Shacks over the long term. In our international license business, we have announced five new country openings in the past few years, including Israel and Canada that our teams are busy supporting. We have also had a strong pipeline of potential new countries, as well as deeper expansion opportunities within current markets, leveraging a growing number of formats. But taken overall, the investments we made in the second quarter were partially offset by efficiencies in other departments as we continue to invest with discipline, and G&A and target delivering leverage this year. preopening costs were $5.6 million in the quarter with our more even weighted development schedule versus last year. At the end of the third quarter, we expect to have opened 27 units compared to 14 in the prior year. We have plans in place around development, training and operations as we target lowering our preopening expenses by about 10% per Shack in 2024 versus this year's level. In the quarter, depreciation was $22.3 million, up 23% year-over-year as we continue to invest in new Shacks. we realized net income attributable to Shake Shack Inc. of $6.9 million or $0.16 per diluted share. We reported an adjusted pro forma net income of $7.9 million or $0.18 per fully exchanged and diluted share. This was the highest level of earnings per share that we have had reported in more than three years. Our adjusted pro forma tax rate, excluding the tax impact of equity-based compensation was 15.6%. Finally, our balance sheet remains solid with $295.2 million in cash and cash equivalents, and marketable securities at the end of the quarter. This was an increase from $293.4 million in the prior quarter. We invested $40.4 million in CapEx in the quarter, up 48% year-over-year.”