Shake Shack UK returns to profit in FY24
It comes as the burger chain benefited from higher sales and improved profitability, as sales rose 6.6% to £51.5m and gross profit margin inched up from 68.14% to 69.44%
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Diverse Dining, which operates the Shake Shack brand in the UK, has reported that profits after tax hit £1.05m in the year ended 31 December 2024, up from a loss of £764k the previous year.
It comes as the burger chain benefited from higher sales and improved profitability, as sales rose 6.6% to £51.5m and gross profit margin inched up from 68.14% to 69.44%.
Meanwhile, the company’s EBITDA for the period improved to £3.5m, from a reported £0.5m in the previous year.
The company opened two new restaurants during the year at London St Pancras and Birmingham Grand Central stations, with at least three more sites planned for 2025. It also expanded its delivery sales channel, moving from one to three delivery aggregator partnerships, despite closing some delivery kitchens.
In 2024, Shake Shack UK was recognised for its sustainability and delivery initiatives, winning two industry awards. Deliveroo named it “the most sustainable restaurant 2024” for responsible sourcing and operational practices.
Directors expressed in Diverse Dining’s filing at Companies House that they were satisfied with the company’s growth given the challenges in the market, and that they were confident about future prospects. The company added it has strengthened its digital presence and is developing an omnichannel strategy to support expansion.
Diverse Dining also noted that restaurant sales were returning toward pre-pandemic levels and that its immediate parent company, Wenchov Holdings, continued to support its property strategy and provide loan funding.
