The pandemic continues to cause headaches for Shake Shack, which on Thursday reported a same-store sales decline of 57% at its urban locations for the second quarter.
Overall, same-store sales fell 49% for the quarter ended June 24, with comps down 38% at suburban units. In July, same-store sales notched up a bit, declining 50% at urban locations and 24% at suburban restaurants, the company said.
“Throughout this difficult time, I remain incredibly proud of our team,” Shake Shack CEO Randy Garutti said in a statement. “They’ve had an unwavering commitment to excellence and hospitality in the face of an incredibly challenging operating environment.”
The fast-casual burger chain has returned to unit development, opening nine new stores so far this year with plans to open 15 to 20 new Shake Shacks by the end of the year. Shake Shack opened four new domestic company-operated restaurants in Q2.
The company’s “Shack Track” pickup windows are being retrofitted into existing stores and incorporated into many new locations.
Plus, the New York City-based chain is seeking to add something to its portfolio it has never had: A drive-thru. Shake Shack, which has been greatly hampered during the coronavirus crisis because of real estate holdings centered in dense, urban areas, is planning to open its first drive-thru unit in 2021.
“We have a strong identified pipeline of leases in negotiation and believe 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,” Garutti said.
Shake Shack’s total revenue decreased 39.9% for the quarter, to $91.8 million. The company had $190.8 million in cash and marketable securities on hand as of June 24.
About 95% of the chain’s 171 domestic company-operated restaurants were open as of last week.
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