1. business and industrial
2. company
3. annual report

Forward-Looking Statements
This presentation contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and
uncertainties. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements discuss our current expectations and
projections relating to our financial position, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements by the fact
that they do not relate strictly to historical or current facts. These statements may include words such as "aim," "anticipate," "believe," "estimate," "expect," "forecast,"
"outlook," "potential," "project," "projection," "plan," "intend," "seek," "may," "could," "would," "will," "should," "can," "can have," "likely," the negatives thereof and other similar
expressions. They appear in a number of places throughout this presentation, including, but not limited to, expected financial outlook for fiscal year 2015, expected Shack
openings, expected same-Shack sales growth and trends in our operations. All forward-looking statements are subject to known and unknown risks, uncertainties and other
important factors that may cause actual results to be materially different. While we believe that our assumptions are reasonable, it is very difficult to predict the impact of
known factors, and it is impossible to anticipate all factors that could affect our actual results. All forward-looking statements are expressly qualified in their entirety by these
cautionary statements. You should evaluate all forward-looking statements made in this presentation in the context of the risks and uncertainties disclosed in Part I, Item 1A
of our Annual Report on Form 10-K for the fiscal year ended December 31, 2014 under the heading "Risk Factors." The forward-looking statements included in this
presentation are made only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future
events or otherwise, except as otherwise required by law.
Non-GAAP Financial Measures
This presentation contains certain non-GAAP financial measures. A “non-GAAP financial measure” is defined as a numerical measure of a company’s financial performance
that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with generally accepted
accounting principles (GAAP). The non-GAAP financial measures used within this presentation are EBITDA, Adjusted EBITDA, Shack-level operating profit, Shack-level operating
profit margin, adjusted pro forma net income and adjusted pro forma earnings per fully exchanged and diluted share. We believe that these non-GAAP financial measures,
when used in conjunction with GAAP financial measures, provide useful information about our operating results, enhance the overall understanding of past performance and
future prospects, evaluate our performance against our competitors and allow for greater transparency with respect to the key metrics we use in our financial and operational
decision making. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information
prepared and presented in accordance with GAAP. The non-GAAP financial measures are not necessarily comparable to similarly titled measures used by other companies due
to different methods of calculation. Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP measures are provided in the Appendix to this
presentation.
7
Domestic company-operated
Domestic licensed
International licensed
63
27
66
27
40
15
5
5
21
14
7
2
3
2
5
9
FY 2010
FY 2011
4
5
3
31
34
21
13
FY 2012
FY 2013
FY 2014
Q1 2015
8
9
Metro New York : 13
Mid-Atlantic: 5
Northeast: 4
Southeast: 3
UK: 1
Turkey: 2
Middle East: 12
Russia: 1
10
2013
$119
$82
$57
$39
$19
FY 2010
FY 2011
FY 2012
FY 2013
FY 2014
11
System-wide Sales ($mm)
$217
$140
$81
$53
$21
FY 2010
FY 2011
FY 2012
FY 2013
FY 2014
12
Margin (%)
$20
$19
30%
25%
$16
$14
18%
$12
16%
14%
20%
18%
16%
$10
15%
$8
$6
$4
10%
$3
5%
$0
0%
FY 2010
FY 2011
FY 2012
FY 2013
FY 2014
13
Revenue
System-wide sales
$37,808
$40,000
$70,000
$64,303
$60,000
$30,000
$50,000
$24,196
$46,252
$40,000
$20,000
$30,000
$20,000
$10,000
$10,000
$0
$0
Q1 '14
Q1 '15
Q1 '14
Q1 '15
In thousands, except percentage amounts
14
Shack-level operating profit margin
30.0%
25.0%
25.7%
Adjusted EBITDA margin
15.0%
20.0%
15.0%
18.5%
20.0%
23.0%
14.9%
10.0%
10.0%
5.0%
5.0%
0.0%
0.0%
Q1 '14
Q1 '14
Q1 '15
Shack-level operating profit
$9,279
$10,000
$8,000
$6,000
Q1 '15
Adjusted EBITDA
$8,000
$6,998
$6,000
$5,205
$4,000
$3,608
$4,000
$2,000
$2,000
$0
$0
Q1 '14
Q1 '15
Q1 '14
Q1 '15
In thousands, except percentage amounts
15
14.0%
12.0%
11.7%
10.0%
8.2%
8.0%
7.2%
6.8%
6.0%
5.9%
4.5%
3.9%
4.0%
2.0%
0.0%
1.2%
0.8%
Q1 '13
Q2 '13
Q3 '13
Q4 '13
Q1 '14
Q2 '14
Q3 '14
Q4 '14
5
7
8
8
9
10
12
13
Q1 '15
13
# of Shacks
16
(In thousands)
$6,000
$7,000
$6,077
$5,017
$5,000
$4,611
$6,000
$5,000
$4,000
$4,588
$4,000
$3,000
$3,000
$2,000
$2,000
$1,000
$1,000
$0
$0
Total Company-Operated
Licensed International
Fiscal 2013
Fiscal 2014 (1)
Fiscal 2013
Fiscal 2014 (1)
21 Shacks
30 Shacks (1)
15 Shacks
27 Shacks
(1) Excludes 53rd week sales; one additional domestic company-operated shack in Las Vegas opened in the 53rd week but was excluded in this metric and the shack count noted
17
Same Shack
Sales
•We open big
•24 month comp data
•Long-term - low single
digit growth
•Moderate price over
time
Margins
•Long term margin
pressure
•Labor costs
•Target Model Shack Mix
•New market launches
•Commodity costs
•Public company overhead
Versatile Model
Where to?
•Strong 4-wall EBITDA at
all sales levels
•Strong AUVs
•Attractive returns
•71 total Shacks today
•450 domestic company
operated Shacks
•At least 10 new
domestic companyoperated Shacks per
year
•Continue to grow
abroad
18
New Shack target
Shack count
10 annually
Average Shack volume ($mm) 1
$2.8 - $3.2
Shack-level operating profit margin 2
18% - 22%
Average Shack investment costs ($mm) 3
$1.5 - $2.5
Cash-on-cash return 4
30% - 33%
¹ AUVs are calculated by dividing total sales from domestic company-operated Shacks by the number of domestic company-operated Shacks open during that period; for Shacks not open during the entire period, fractional adjustments are
made to the number of Shacks open such that it corresponds to the period of associated sales; 2 Defined as Shack sales less operating expenses, including food and paper costs, labor and related expenses, other operating expenses and
occupancy and related expenses as a percentage of Shack sales 3 Excludes pre-opening expenses; 4 Defined as third year operating profits for domestic company-operated Shacks open for at least three full years, divided by their life-to-date
associated build-out costs, excluding any pre-opening expenses
19
20
Las Vegas, NV
Baltimore, MD
Boston, MA
Austin, TX
Chicago Athletic Association, IL
Stratford, London
Old Orchard, IL
Fulton Center, NYC
West Hollywood, CA
Tokyo, Japan
Thirteen Weeks Ended
April 1,
March 26,
2015
2014
Shack-level operating profit [A]
Add:
Licensing revenue
Less:
General and administrative expenses
Depreciation expense
Pre-opening costs
Loss on disposal of property and equipment
$
Operating income
$
Total revenue
Less: licensing revenue
Shack sales [B]
Shack-level operating profit margin [A / B]
9,279 $
5,205
1,761
1,556
18,385
2,191
1,413
—
3,363
1,231
933
5
(10,949) $
$
37,808
$
(1,761)
36,047
25.7 %
1,229
$
24,196
$
(1,556)
22,640
23.0 %
35
Fiscal Year Ended
Dec 31,
2014
Net income
$
Dec 25,
2013
2,118
$
Dec 26,
2012
5,423
$
Thirteen Weeks Ended
Dec 28,
2011
4,133
$
Dec 29,
2010
1,328
$
Apr 1,
2015
222
$
Mar 26,
2014
(11,260)
$
1,092
Depreciation expense
5,809
3,541
2,162
1,299
680
2,191
1,231
Interest expense, net
363
52
156
90
90
78
35
Income tax expense
662
460
397
190
27
233
102
8,952
9,476
6,848
2,907
1,018
(8,758)
2,460
165
93
450
877
—
792
41
—
2,054
—
—
—
—
21
4,024
1,737
1,623
1,265
1,470
955
724
2,830
975
839
1,125
332
556
316
105
25
—
—
—
—
5
—
—
—
—
—
12,818
—
2,675
—
—
—
—
635
—
135
—
—
—
—
—
41
EBITDA
Equity-based compensation (1)
Deferred compensation (2)
Pre-opening
costs (3)
Deferred rent
(4)
Loss on disposal of property and equipment
(5)
Non-recurring compensation expenses related to the IPO (6)
IPO-related costs (7)
Other non-cash items
(8)
ADJUSTED EBITDA
Total revenue
EBITDA margin
Adjusted EBITDA margin
$
18,886
$
14,360
$
9,760
$
6,174
$
2,820
$
6,998
$
3,608
118,530
82,456
57,038
38,572
19,472
37,808
24,196
7.6 %
11.5 %
12.0 %
7.5 %
5.2 %
(23.2)%
10.2 %
15.9 %
17.4 %
17.1 %
16.0 %
14.5 %
18.5 %
14.9 %
¹ Represents non-cash equity-based compensation expense. For the thirteen weeks ended April 1, 2015, amount relates solely to stock options granted in connection with the IPO. 2 Represents amounts accrued under a bonus agreement we entered into with an
executive pursuant to which we agreed to a pay a bonus in a future. 3 Non-capital expenditures associated with opening new Shacks exclusive of deferred rent incurred prior to opening. 4 Reflects the extent to which our annual rent expense has been above or below
our cash rent payments. 5 Includes the loss on disposal of property and equipment in the ordinary course of business. 6 Non-recurring compensation expense incurred in connection with the IPO, including expense recognized in settlement of outstanding awards under
the UAR Plan, the related employer withholding taxes and the accelerated vesting of outstanding restricted Class B units. 7 Costs incurred in connection with our initial public offering, including legal, accounting and other related expenses. 8 For periods presented,
represents non-cash charges related to certain employee benefits.
36