Shake Shack operator posts £6.6m loss

Shake Shack UK’s operator Diverse Dining Ltd has posted a loss for the year to 31 December 2018, of £6.6m – an improvement on the £7.7m loss reported for the previous year.

Diverse Dining, owned by Lebabon-based parent company Assad Food and Beverage, achieved an overall sales increase of 27% for the year, to £27.1m, but the business still made an operating loss of £6.2m (2017: £8.3m).

Shake Shack currently has 10 sites in the UK. It’s most recent opened at Intu Lakeside earlier this year, while one site was opened during the 2018 financial year – its first in the City, on Cannon Street.

Last month MCA revealed that the brand was to open its debut airport site at Gatwick Airport’s North Terminal, in partnership with TRG Concessions. It is set to open in the former EAT site in October.

Director Bassam Assaad, said that overall he was “satisfied” with the company’s results as they were within expectations and performance improvements had been made year-on-year.

Assad said: “The company continues to look for the right opportunities to expand in new areas and has several new sites being evaluated for 2019 openings with the continued support of its immediate parent undertaking.”

During the period Diverse Dining entered into a US $60m loan agreement with its parent company.