Shake Shack Inc - Class A
Q2 2026 Earnings
Market Reaction
Did SHAK Beat Earnings? Q2 2026 Results
Shake Shack delivered a stronger-than-expected second quarter for fiscal 2026, posting earnings per share of $0.43 against a consensus estimate of $0.31, a beat of 38.71%, even as pre-earnings commentary had flagged concerns about profitability pressure weighing on the investment narrative. Revenue climbed 17.2% year-over-year to $417.62 million, fueled by 16 new Company-operated Shack openings, its strongest second-quarter unit expansion on record, and same-Shack sales growth of 3.5% that included a second consecutive period of positive traffic. The headline beat, however, masked real margin strain: record-high beef costs, which represent roughly 35% of the food and paper basket and rose at a mid-teens pace, compressed restaurant-level profit margin by 90 basis points to 23.0%, while management deliberately held pricing to just 1.0% to protect value positioning. Looking ahead, Shake Shack guided full-year 2026 revenue of $1.60 billion to $1.70 billion and adjusted EBITDA of $225 million to $235 million, while cautioning that tougher comparisons, continued beef inflation, and competitive intensity could weigh on the back half.
- Same-Shack sales growth of 3.5% including positive traffic of 2.0%
- Comparable app channel sales grew nearly 30% year-over-year
- Opened 16 new Company-operated Shacks, strongest second quarter of unit growth
- Labor efficiency improved, labor costs down 60 bps year-over-year as percentage of Shack sales
- $2, $4, $6 digital offers driving app engagement and frequency
- Estimated 90 basis point boost from World Cup in June
- System-wide unit count grew 15.2% year-over-year
“Our second quarter results reflect a business that continues to execute across sales, development, and profitability despite navigating one of the most challenging cost environments we have faced in many years. While we remain focused on the work ahead, I am encouraged by the resilience of the Shake Shack model and confident in our ability to deliver on our long-term plan.”
Shake Shack CEO, on the earnings call
Forward Guidance & Outlook
Full-year 2026 guidance: 60-65 Company-operated openings; 40-45 licensed openings; total revenue of $1.6B-$1.7B; licensing revenue of $57.0M-$59.0M; same-Shack sales growth in the low-single-digits versus 2025; restaurant-level profit margin of 22.0%-23.0%; G&A expenses of 12.0%-13.0% of total revenue; equity-based compensation of ~$28M; depreciation and amortization of $124M-$128M; pre-opening costs of $26M-$28M; net income of $45M-$55M; adjusted EBITDA of $225M-$235M; adjusted pro forma tax rate of 25%-27%. The company factors in pressure on consumer spending landscape and ongoing inflationary headwinds, and does not reflect potential changes to tariffs. Management cautioned about tougher comparisons, continued beef inflation, and ongoing competitive intensity in the back half of the year.
SHAK YoY Financials
SHAK Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.