Shake Shack CEO Randy Garutti will retire next year with the burger and milkshake chain gaining significant momentum as it undergoes a significant expansion.
Garutti will remain with the company until a successor is found and will be an advisor through 2024 to help with the transition for the new CEO.
Garutti, who is also a board member, has worked for Shake Shack for more than 20 years. He plans to spend more time with his wife and three children upon retirement.
"When we launched a hot dog cart out of Eleven Madison Park in 2001, and then three years later, turned it into Shake Shack - a kiosk in Madison Square Park - Randy asked for the ball," said Danny Meyer, the restaurateur founder of the company. "Shake Shack was an overnight hit, but it had not dawned on me that we might grow the business beyond its first park location until Randy urged that we do so with a second Shack, nearly five years later. Now, nearly 20 years and over 500 Shacks later, Randy has more than earned the richly-deserved opportunity to think about his next act."
Shake Shack has opened 30 new restaurants this year and has a goal of 40 new locations in 2023. It plans to open the 40 restaurants next year, as well.
There are now more than 500 Shake Shacks in 18 countries and 33 states. The company expects to surpass $1 billion in revenue this year for the first time with double digit percentage growth in every one of the past 10 years.
The chain got an upgrade from Raymond James analysts last week, which say they expect fatter profit margins and the potential to increase traffic next year.
Shake Shack Inc.'s board has started an external search for its next CEO.
Shares jumped nearly 10% Monday.