After releasing its first earnings report since going public, New York City-based burger chain Shake Shack held a call with shareholders and media. Investors showed their disappointment with the earnings report; SHAK's stock price fell seven percent. Here are the most important take-aways from founder Danny Meyer and CEO Randy Garutti's call today:
1. The company continues to reiterate Shake Shack's conservative growth plan of 10 stores per year domestically. So far, they have secured five locations internationally for 2015.
2. Regarding Shake Shack's growth in Japan, Meyer and co. say they will open 10 total locations with their partners there.
3. Other international growth will be focused on the Middle East, UK, and London.
4. Shake Shack attributes lower-than-expected Q1 sales numbers in part to the temporary shutter of its original Madison Park location. This location is not expected to reopen until late spring/early summer. The extreme weather on the East Coast was also cited as a concern.
5. Focusing on its mission to maintain quality despite investor pressures, Shake Shack has committed to using non-GMO burgers, buns, and hot dogs at all locations. The company admits to feeling the pressure of rising beef prices, however.
6. The first Shake Shack will open in Tokyo in 2016.
UPDATE: A previous version of this post stated that Shake Shack would be opening a second location in Las Vegas in 2016. That has not been confirmed. Additionally, Shake Shack will open its first location in Japan in 2016, not 2015 as was previously stated.