Latest news with #RobLynch
Yahoo
31-05-2025
- Business
- Yahoo
Shake Shack to introduce first loyalty programme
US-based fast-casual restaurant chain Shake Shack is set to enhance customer engagement through its first loyalty programme and exclusive app offers. From 28 May 2025, the chain introduced a $1 soda offer for app users, described as a "Shake Hack" with more to follow. The initiative, aimed at driving traffic and building loyalty, will be complemented by the launch of a loyalty feature called "Challenges" on 5 June, accessible via Shake Shack's app and website. Bloomberg reports that the decision follows a successful earlier trial, which indicated that such loyalty offerings could significantly increase customer visit frequency. Shake Shack chief growth officer Steph So described the strategy as intended to encourage repeat visits and incentivise app downloads and sustained usage. The soda deal will not only draw customers in but also prompt them to purchase additional items, such as milkshakes, potentially leading to larger transactions and increased overall profits. Under the leadership of CEO Rob Lynch, Shake Shack plans to grow from 333 company-operated US locations to 1,500. The chain opened a record 76 restaurants in the fiscal year 2024, with 43 company-operated, and is targeting suburban areas for further development, including more drive-throughs. Shake Shack plans to open 80 to 85 new company-operated restaurants in the second half of 2025. The brand reported first-quarter revenues of $320.9m for 2024, a 10.5% increase year-on-year, with comparable sales slightly up by 0.2%. In a 1 May 2025 shareholder letter, the company stated: 'Despite macro uncertainties, we remain focused on creating durable value for all our stakeholders through initiatives to drive same-Shack sales, including strengthening our culinary and calendar strategy and driving frequency,' In a recent move to broaden its reach, Shake Shack has entered a licensing partnership with PENN Entertainment, bringing the Shake Shack burger brand to ten of PENN's casino locations across the US. "Shake Shack to introduce first loyalty programme" was originally created and published by Verdict Food Service, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Daily Mail
29-05-2025
- Business
- Daily Mail
East Coast's favorite burger chain rolls out its first loyalty scheme as it ramps up bid to take on McDonald's
Shake Shack is rolling out its first loyalty program to compete with bigger rivals such as McDonald's. The gourmet fast food chain will offer app users $1 sodas starting Wednesday. Customers will be able to unlock discounts by ordering online or through the app starting on June 5. The discounts will depend on buying a burger or BBQ sandwich, the chain's specialist items, at least twice within a specified time period. 'We've actually never at Shake Shack proposed to our guests how often we think they should come visit,' Shake Shack's chief growth officer Steph So told Bloomberg about the new offers. 'There's almost a sense that Shake Shack is a special thing and it's saved for special occasions.' The New York-based chain has around 300 locations in the US, mostly around the East Coast - but is looking to expand. Loyalty programs help restaurants to increase visit frequency and are increasingly a draw for consumers who are pulling back their spending on eating amid economic uncertainty. The goal of the offers is not just to keep visitors returning more than they normally would, but also to encourage them to download the app and keep using it, So told Bloomberg. Shake Shack also hopes the value of the soda deal, which offers small and large sodas for just $1, will encourage consumers to buy another drink with their meal, such a milkshake. This could lead to bigger transactions and therefore increase profits overall. Shake Shack's CEO Rob Lynch has set his sights on growing the chain from around 333 company-operated US locations to 1,500. 'We believe that we are just getting started, and see an ample runway for growth ahead,' Lynch said earlier this year. 'We are committed to bringing the world's best fine casual experience to as many guests, team members, and communities as possible,' he added. Shake Shack opened 76 restaurants during the 2024 fiscal year, 43 of which were company-operated, a record high for the company. The chain plans to target suburban areas with more drive-thrus. Shake Shack's CEO Rob Lynch has set his sights on growing the chain Shake Shack opened 76 restaurants during the 2024 fiscal year Shake Shack confirmed that it plans to open 80 to 85 new company-operated restaurants later this year. Shake Shack delivered strong earnings last year, but saw its profits dip in the first quarter of 2025. Bad weather and the economic turbulence of Trump's tariffs put customers off. However sales appear to have rebounded in recent weeks, according to credit card data tracked by Bloomberg. It comes after the company announced it would partner with Delta Air Lines to serve burgers to first-class passengers. The sandwich included an angus beef patty, topped with cheese and served on a toasted potato bun. Passengers can also customize their orders with tomatoes, lettuce, and sauce, and also receive a side salad, chips, and a brownie.
Yahoo
15-05-2025
- Business
- Yahoo
SHAK Q1 Earnings Call: Operational Gains Offset Soft Sales Amid Expansion Push
Fast-food chain Shake Shack (NYSE:SHAK) fell short of the market's revenue expectations in Q1 CY2025, but sales rose 10.5% year on year to $320.9 million. Its non-GAAP profit of $0.14 per share was 12.4% below analysts' consensus estimates. Is now the time to buy SHAK? Find out in our full research report (it's free). Revenue: $320.9 million vs analyst estimates of $327.4 million (10.5% year-on-year growth, 2% miss) Adjusted EPS: $0.14 vs analyst expectations of $0.16 (12.4% miss) Adjusted EBITDA: $40.75 million vs analyst estimates of $41.94 million (12.7% margin, 2.8% miss) Operating Margin: 0.9%, in line with the same quarter last year Free Cash Flow was $1.87 million, up from -$2.39 million in the same quarter last year Locations: 589 at quarter end, up from 525 in the same quarter last year Same-Store Sales were flat year on year (1.6% in the same quarter last year) Market Capitalization: $4.67 billion Shake Shack's first quarter of 2025 highlighted management's focus on operational improvements and margin expansion, even as the company contended with flat same-store sales and macro pressures. CEO Rob Lynch attributed the quarter's results to better restaurant-level productivity and ongoing cost-control initiatives, noting, 'this marks the highest first quarter restaurant-level profit margin since 2019.' The company faced headwinds from adverse weather, elevated beef and wage costs, and sluggish traffic in key urban markets, but responded by prioritizing cost efficiencies and refining labor models. Leadership explained that operational agility and menu innovation were central to navigating a challenging environment, while outlining a strategy for continued expansion and cost reduction. Operational model transformation: Management credited improved labor planning and productivity tools for higher restaurant-level profitability, emphasizing that new labor models rolled out in late 2024 enabled teams to quickly adjust to traffic swings and macro headwinds. Menu and culinary innovation: The company underscored a shift to more frequent limited-time offerings (LTOs)—such as the Dubai Chocolate Pistachio Shake and summer barbecue menu—to draw traffic and enhance guest engagement. New menu boards and combo offerings, especially in drive-thru locations, were highlighted as drivers of improved order speed and guest satisfaction. Geographic performance divergence: Markets less affected by weather, such as those in the Southeast and Southwest, posted stronger sales growth compared to core urban regions (New York, Los Angeles, Washington, D.C.), which experienced disproportionate declines due to weather and tourism-related macro factors. Expansion and new formats: Shake Shack reaffirmed its accelerated unit growth strategy, aiming to open up to 50 company-operated locations in 2025, with emphasis on drive-thru and new market entries. Supply chain and construction cost reduction remained a priority, with management reiterating a target to reduce build costs by at least 10% this year. Digital engagement and loyalty: The company introduced new guest recognition and targeted incentive platforms in its app and web channels, with early results showing promise in driving multi-visit frequency and improving digital mix, which reached 38% of sales in the quarter. Shake Shack's outlook for 2025 centers on leveraging operational gains, menu innovation, and accelerated location growth to drive revenue, while monitoring economic headwinds and input costs. Margin expansion focus: Management expects at least 50 basis points of annual restaurant-level profit margin improvement for the next three years, driven by further operational and supply chain efficiencies rather than aggressive menu price increases. Menu innovation cadence: The rollout of more frequent LTOs across menu categories, including beverages and sides, is intended to attract new guests and increase frequency, helping counterbalance traffic softness and limited pricing actions. Geographic diversification: Continued expansion into high-growth markets in the Southeast and Southwest is expected to reduce dependency on historically volatile urban markets, while drive-thru formats provide access to new customer segments. Brian Vaccaro (Raymond James): Asked how Shake Shack achieved margin expansion despite flat sales. Management credited labor model improvements and operational discipline, noting ongoing productivity initiatives in both operations and supply chain. Christine Cho (Goldman Sachs): Inquired about drive-thru combo tests. CEO Rob Lynch shared that new digital menu boards and combo strategies improved order speed and guest satisfaction, with plans to expand combos across all drive-thrus. Michael Tamas (Oppenheimer): Probed confidence in achieving low-single-digit same-store sales for the year. Management cited increasing menu innovation and marketing activations as key drivers for expected improvement in the back half of 2025. Sharon Zackfia (William Blair): Questioned the balance between frequent LTOs and operational complexity. Lynch detailed process improvements that enable more frequent innovation without harming throughput, referencing new ingredient sourcing and equipment investments. Peter Saleh (BTIG): Asked about margin resilience and accelerated unit growth despite macro headwinds. Management highlighted best-ever labor attainment and waste reduction, and noted that construction and build costs are trending below forecast even with tariff concerns. Looking ahead, the StockStory team will monitor (1) whether operational initiatives—especially in labor and supply chain management—continue to expand margins, (2) the effectiveness of frequent menu innovation and targeted marketing in reigniting traffic growth, and (3) the success of new unit openings in diversifying sales away from weather-impacted core markets. Execution in drive-thru formats and digital guest engagement will also be key signposts. Shake Shack currently trades at a forward P/E ratio of 87.4×. Should you double down or take your chips? See for yourself in our free research report. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
Bloomberg
20-02-2025
- Business
- Bloomberg
Shake Shack Expects Competitors to Swap Chicken, Beef for Eggs
Shake Shack Inc. is warning that its competitors may double down on beef and chicken as egg prices surge. The New York-based chain is relatively insulated from the egg crisis because it doesn't have a big breakfast business, but its competitors that do are likely to bolster their menus with alternatives, Chief Executive Officer Rob Lynch said Thursday on a call with analysts.
Reuters
31-01-2025
- Sport
- Reuters
MCC announces fund for Aghan women's refugee team
LONDON, Jan 31 (Reuters) - Afghanistan's exiled women cricketers will be the first beneficiaries of a new refugee fund started by the Marylebone Cricket Club, the MCC said on Friday. Hundreds of athletes fled Afghanistan after the Taliban reclaimed power in 2021 and effected sweeping restrictions on women in the country. Of the 25 Afghan women contracted by the country's cricket board in 2020, most have settled in Australia and played their first match on Thursday. The MCC's global refugee cricket fund, which aims to initially raise one million pounds ($1.24 million), is intended for displaced communities such as the Afghan players. "Cricket has the power to inspire, unite, and empower, and through this initiative, we aim to bring hope and opportunity to those who need it most," MCC secretary Rob Lynch said in a statement. While Afghanistan has an established men's team and enjoys funding from the International Cricket Council (ICC), the women are unfunded and unsanctioned by the global body despite pleas for support from the players. The Taliban say they respect women's rights in accordance with their interpretation of Islamic law and local customs and that they are internal matters that should be addressed locally. The early focus of the refugee fund will be to raise money to provide safe training facilities, educational opportunities, and growth pathways, the MCC, which is responsible for the laws of cricket, said in a statement. The England and Wales Cricket Board has also lent a helping hand. "The cricket community must take action, to support the brave Afghan women, and to give hope that cricket can be a sport for any woman or girl," ECB deputy chief executive Clare Connor said. "We hope the launch of the fund will inspire other cricketing organisations to support this cause, and to unlock cricket's power to unite communities around the globe."
