Shake Shack 2016 Annual Report Download - page 12

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Table of Contents
Shack-wide Events
Shake Shack promotes annual events and limited-time offers to drive repeat visits and build intrigue among staff and guests. Shacktoberfest, for example, is Shake
Shack's ode to traditional Oktoberfest in which special sausages, beers and desserts are added to the menu for a 10-day period in the fall.
Since 2012, Shake Shack has held The Great American Shake Sale during the month of May to raise money and awareness for childhood hunger. During The
Great American Shake Sale, we encourage guests to donate $2 in exchange for a free cake-themed shake (a $5 value) at their next visit. 100% of these donations go
directly to Share Our Strength's No Kid Hungry campaign. In May 2015, we raised $504,000 across our domestic company-operated Shacks for this initiative.
Product Placement
Shake Shack has been fortunate to receive considerable product placement in movies, TV shows and other media without any cost to the Company. In fact, Shake
Shack has been able to charge fees for these location shoots, which have included scenes from the motion pictures Something Borrowed and Tower Heist , as
well as the acclaimed HBO series The Newsroom and Showtime's Billions . We have also been featured in segments on The Daily Show , Saturday Night Live ,
CBS Sunday Morning and Late Night with Jimmy Fallon .
We Are Accountable For Results
▪We practice the Excellence Reflex and take zero shortcuts.
▪ We plan for the business we want, and are responsible for the business we have.
▪ We keep everyone safe with diligence in maintenance, cleaning and sanitation and hygiene.
▪ We invest in ourselves, our company and our Shacks.
▪ We make money and use profits to create opportunities for all of our stakeholders.
• We strengthen our brand with every decision, our long term goals are believed and our company is held to higher standards than others.
Our brand power and thoughtful approach to growth have resulted in strong Shack performance across a variety of geographic areas and formats. During the three-
year period ended December 30, 2015 , we grew from 21 Shacks to 84 Shacks spanning 12 states, the District of Columbia and 10 countries, representing a 59%
compound annual growth rate ("CAGR"). As a result, our total revenue grew from $57.0 million in fiscal 2012 to $190.6 million in fiscal 2015 , a 50% CAGR.
Compared to fiscal 2014 , total revenue increased 60.8%. Net loss for fiscal 2015 was $8.8 million, compared to net income of $2.1 million for fiscal 2014 .
Adjusted pro forma net income *, a non-GAAP measure, increase d 154.9% to $12.0 million , or $0.32 per fully exchanged and diluted share, compared to $4.7
million , or $0.13 per fully exchanged and diluted share in fiscal 2014. Adjusted EBITDA, a non-GAAP measure, increased 117.7% to $41.1 million for fiscal
2015 from $18.9 million for fiscal 2014 . For a reconciliation of Adjusted EBITDA, a non-GAAP measure, to net income, see "Non-GAAP Financial Measures—
EBITDA and Adjusted EBITDA" in Part II, Item 7.
Shake Shack Inc. Form 10-K | 10