Shake Shack Inc. (SHAK): restructuring charge — Shake Shack to close 9 underperforming locations; expects $28-30M pretax charges in Q3 2024

Shake Shack Inc.

Nine company-owned Shacks in California, Ohio, Texas to close by Sept 25, 2024.
Expected cumulative pretax charges of $28-30M in Q3 2024; cash costs $14-15.2M.
Non-cash impairment charges of $14-14.8M for asset impairment and write-offs.
Management and hourly team members offered transfers or up to 60 days pay.
Company reaffirms FY2024 guidance and 2024 opening plans; no additional closures expected.

Key facts

Extracted from this filing and checked against the source text.

Restructurings & Charges SEC 8-K Item 2.05/2.06 confidence 0.9

Shake Shack Inc. announced a restructuring with charges of approximately $28.0 to $30.0 million affecting nine Company-owned and operated Shacks in California, Ohio and Texas.

Type: restructuring
Charge: approximately $28.0 to $30.0 million
Affected area: nine Company-owned and operated Shacks in California, Ohio and Texas

Exact text from the filing

The Company expects to record cumulative pretax charges in a range of approximately $28.0 to $30.0 million during the third quarter ending September 25, 2024 as a result of these Shack closures.

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Shake Shack Inc. filing history →

Source: SEC EDGAR

accession 0001104659-24-093435

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