Financial Data and Key Metrics Changes - In Q1 2025, the company reported a 13% year-over-year increase in total revenues to $57.3 million, driven by restaurant expansion and success in existing locations [5][19] - Same store sales decreased by 0.7% in Q1 2025, a significant improvement from a 5.6% decline in 2024 [7] - Restaurant level adjusted EBITDA margin was approximately 15.6%, slightly below the annual goal of 17-18% due to costs from new restaurant openings [7][19] - The company reported a net loss before income taxes of $2.1 million, compared to a net income of $3.8 million in Q1 2024, which included a one-time gain [21][22] Business Line Data and Key Metrics Changes - The company opened six new restaurants in Q1 2025, increasing the total to 49, with plans to open 12-13 new stores by February 2026 [6][16] - Adjusted EBITDA for Q1 2025 was $1.2 million, down from $6.4 million in Q1 2024, but adjusted EBITDA excluding one-time gains was $3.3 million, only slightly down from $3.6 million in Q4 2024 [22] Market Data and Key Metrics Changes - The company is expanding into South Korea, planning to open three new restaurants in 2025, with the first expected to open by the end of Q2 [15][16] - The construction cost for new units in South Korea is projected to be 25-30% lower than in the US, providing compelling potential returns [55] Company Strategy and Development Direction - The company focuses on a value-priced all-inclusive dining model, which is expected to support long-term growth [5] - The dual concept store model, combining Jen and Con Sushi, aims to capture more customers and improve operational efficiency [13][14] - The company is exploring partnerships for gift card sales to enhance brand strength and customer engagement [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic pressures affecting consumer demand, particularly in early 2025 [30][31] - The company remains confident in achieving its revenue target of $245-250 million for 2025 and aims for an annual run rate approaching $300 million by the end of the year [16][26] - Management is prepared to pause new restaurant development if tariff-related cost increases significantly impact ROI [17][47] Other Important Information - The company has a strong liquidity position with $15.4 million in cash and only $5 million in long-term debt [23][25] - The founder's ownership of 85% aligns their interests with public shareholders, supporting long-term growth strategies [24] Q&A Session Summary Question: Can you discuss same store sales progression in Q1 and current trends in Q2? - Management noted strong performance in January and February, but a slight decline in March and continued negative trends in April and May [30][31] Question: What gives confidence in achieving the 17-18% EBITDA margin target for 2025? - Management indicated that Q1 is typically the lowest quarter and expects to improve margins as the year progresses [43][44] Question: What are the expectations for build costs in 2025 amid tariff impacts? - Management expressed uncertainty about price increases for kitchen equipment and construction materials from China, indicating a potential pause in construction if costs rise significantly [47][48] Question: How are the new restaurant openings performing? - Management stated it is too early to assess performance, with mixed results from the new locations [49] Question: Can you break down Q1 performance in terms of average check versus traffic? - Management reported a 2.5% increase in average check but a 10-11% reduction in customer traffic, resulting in a net decline of less than 1% [52] Question: What are the prospects for the South Korean market? - Management highlighted the competitive landscape and lower construction costs, indicating a cautious but optimistic approach to expansion in South Korea [55][56] Question: What is the current redemption rate for gift cards? - Management indicated that the redemption rate has stabilized around 65%, which is above the industry average [58]

Core Insights - The article discusses potential investment opportunities in GENK, indicating a possible long position in the stock or related derivatives within the next 72 hours [1]. Group 1 - The analyst has no current stock or derivative positions in the companies mentioned but may initiate a beneficial long position soon [1]. - The article expresses the author's personal opinions and is not influenced by any compensation from the companies discussed [1]. Group 2 - There is a disclaimer regarding past performance not guaranteeing future results, emphasizing that no specific investment advice is provided [2]. - The views expressed may not reflect those of the broader platform, highlighting the independent nature of the analysts involved [2].

Company Performance - Shake Shack reported quarterly earnings of $0.14 per share, missing the Zacks Consensus Estimate of $0.16 per share, and showing a slight increase from $0.13 per share a year ago, resulting in an earnings surprise of -12.50% [1] - The company posted revenues of $320.9 million for the quarter ended March 2025, which was 2.09% below the Zacks Consensus Estimate, but an increase from $290.5 million year-over-year [2] - Over the last four quarters, Shake Shack has surpassed consensus EPS estimates two times and topped revenue estimates two times [2] Stock Performance - Shake Shack shares have declined approximately 32.4% since the beginning of the year, contrasting with the S&P 500's decline of -5.3% [3] - The current Zacks Rank for Shake Shack is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.33 on revenues of $355.99 million, and for the current fiscal year, it is $1.26 on revenues of $1.46 billion [7] - The outlook for the Retail - Restaurants industry, to which Shake Shack belongs, is currently in the bottom 19% of over 250 Zacks industries, suggesting potential challenges ahead [8]