shake shack growth strategy

After adjusting for the impact of protests, same-store sales showed sequential growth, with June delivering a drop of 39 percent, and Q2 negative 47 percent.Corporate units’ most recently average weekly sales were $58,000—an increase of 18 percent compared to the week of April 29.One of the anvils on Shake Shack’s performance currently is its New York City volume. Personal Finance

Since 3Q17, the company has opened a restaurant in Yokohama, Japan.Shake Shack has raised its unit growth guidance for 2017. On the growth front, Shake Shack opened four corporate units in the first quarter and five since the pandemic started (nine year-to-date). A total of 15 to 20 domestic stores will be opened by the end of the year, and management believes "additional and improved development opportunities may be available over time due to the impact of COVID-19 on the overall retail and real estate environment." The numbers weren't pretty, but Shake Shack is making steady progress in most markets (not so much in New York City where same-Shack sales remained down 56% in July). Also like Starbucks, Shake Shack is planning changes to the actual makeup of its real estate to accommodate the shift in behavior that is shaping up. Stock Market The company’s total revenue hiked from $191 million to $657 million in that span as total systemwide sales bumped to $839 million from $295 million and cash flow from operations lifted from $41 million to $96 million.But an interesting development out of COVID-19 will be how Shake Shack selects potential leases. At the beginning of 2020, 24 percent were 12 months or younger. Retirement Cumulative Growth of a $10,000 Investment in Stock AdvisorShake Shack Begins a New Era of Restaurant Development Flush With Cash @themotleyfool #stocks $SHAK $SBUX Shake Shack has trumpeted its rapid expansion plans. Not surprisingly, Shake Shack (NYSE:SHAK) had a terrible outing in the second quarter. It said Wednesday it “has an identified pipeline of leases in negotiation for continued growth in 2021 and beyond.”Before the crisis, the brand forged ahead with format expansion and concentric growth in already developed markets (of Shake Shack’s planned 2020 growth, only 10 percent were slated for new DMAs after roughly 20 percent in 2019)Yet coronavirus has stressed those paths short- to mid-term with no clear vision to latch onto, as travel grinds to a halt and live sports contemplate playing pared-down seasons without crowds or in front of limited capacity venues. Second, Meyer's approach to growth so far gives a sense of how he and his team might manage it in the future. Digital will remain “a significant component of sales and ongoing growth,” the company said.On April 23, Shake Shack extended a 10 percent premium pay raise to all hourly employees. Q2 bonuses were guaranteed at a minimum of 10 percent of salary for all active managers.Additionally, Shake Shack said it paid all hourly employees in the field for their normally scheduled hours shortened or cancelled by recent closures and reduced operating hours stemming from protests and curfews. Barring no future work stoppages or flareups, Garutti said the brand expects to debut between 6–11 additional company-run Shake … But to stay ahead of the game, the burger giant will need to find new ways to renew its blue ocean. Far more severe than larger counter-service, publicly traded chains, which are closing in on pre-virus sales levels, like Shake Shack's Dining Rooms Close Amid Coronavirus SpreadIn the early weeks, sales at U.S. venues were down as much as 90 percent, with an average of 70 percent—mirroring closer to full-service struggles than quick-service examples.Shake Shack opened four U.S. restaurants in Q2 (period ended June 24); in Sacramento and Los Angeles; Charlotte, North Carolina; and St. Louis.

"As Shake Shack continues to expand, I'm excited to leverage my expertise in brand, e-commerce, and digital marketing to help guide their growth." The development plan includes the development of 14 restaurants in the next ten years. In the week ended April 29, it was just 59.Total year-over-year licensed sales growth: –65 percentTotal year-over-year licensed sales growth: –59 percentTotal year-over-year licensed sales growth: –47 percentTotal year-over-year licensed sales growth: –39 percentShake Shack opened two licensed restaurants post Q1 in Shanghai, China—the first May 28 at the Hongqiao Airport and subsequently on June 28 at the Grand Gateway Plaza.In late June, the brand also announced an expansion of its existing partnership with Maxim’s Caterers Limited to open a minimum of 15 additional units across South China by 2030, including locations in Shenzhen, Guangzhou, Fuzhou and Xiamen.