Shake Shack Inc - Class A
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −8.32%.
Did SHAK Beat Earnings? Q4 2025 Results
Shake Shack closed out fiscal 2025 with a decisive fourth-quarter beat, posting earnings per share of $0.37 against a consensus estimate of $0.11, a 228.89% positive surprise, while revenue of $400.53 million topped expectations by 8.08% and climbed 24.8% year over year. The standout performance was anchored by disciplined operational execution, with a new labor model driving a 150 basis point reduction in labor costs to 25.4% of Shack sales, helping sustain restaurant-level profit margin at 22.7% even as low-teens beef cost inflation pressured food and paper costs. The quarter also marked Shake Shack's 20th consecutive period of positive same-Shack sales growth, with same-Shack sales up 2.1%, and digital sales reaching 39.1% of Shack sales. Management filed a corrected annual report clarifying that 45 new Shacks contributed $68.3 million to 2025 Shack sales. Looking ahead, the company guided FY2026 total revenue of $1.60 billion to $1.70 billion and Adjusted EBITDA of $237 million to $245 million, underpinned by 55 to 60 new Company-operated Shack openings.
- Same-Shack sales grew 2.1% in Q4 with positive traffic growth of 0.5%
- 20th consecutive quarter of positive same-Shack sales
- New labor model drove 150 bps year-over-year improvement in labor costs as percentage of Shack sales
- Largest development class with 45 Company-operated and 40 licensed Shacks opened in FY2025
- Digital sales accounted for 39.1% of Shack sales, up from 36.6% last year
- Average net build cost reduced approximately 20% to under $2 million per new Shack
- Restaurant-level profit margin expanded 120 bps year-over-year to 22.6% for the full year
“2025 was a year of strong execution and disciplined growth that demonstrated our focus on the right strategic priorities. Despite an uncertain macroeconomic environment, our team delivered solid financial results, expanded our footprint with our largest class yet, and made important strides in improving our unit economics and guest value proposition. For the year, we grew Total revenue by more than 15%, delivered positive same-Shack sales growth with 2.3% comps, expanded our Restaurant-level profit margin by 120 bps to 22.6%, and drove 20% year-over-year growth in Adjusted EBITDA. Our success reflects the disciplined execution of operational excellence, supply chain optimization, compelling culinary innovation, and enhanced unit economics through margin expansion and meaningful reductions in build costs, positioning the business for more durable and profitable growth.”
Shake Shack CEO, on the earnings call
Forward Guidance & Outlook
For Q1 2026, Shake Shack expects 12-14 new Company-operated Shack openings, approximately 4 licensed openings, total revenue of $366-$370 million, licensing revenue of $12.8-$13.2 million, same-Shack sales growth of 3.0%-5.0%, and restaurant-level profit margin of 21.5%-22.0%. For FY 2026, the company guides 55-60 new Company-operated Shacks, 40-45 licensed openings, total revenue of $1.6-$1.7 billion, licensing revenue of $59.0-$61.0 million, low-single-digit same-Shack sales growth, restaurant-level profit margin of 23.0%-23.5%, G&A at 12.0%-13.0% of total revenue, equity-based compensation of $28 million, depreciation and amortization of $128-$132 million, pre-opening costs of $25-$27 million, net income of $50-$60 million, Adjusted EBITDA of $237-$245 million, and adjusted pro forma tax rate of 24%-25%. Three-year financial targets include low-teens total revenue and system-wide unit growth, at least 50 basis points of annual restaurant-level profit margin expansion, and low-to-high-teens Adjusted EBITDA growth. Food and paper inflation expected in low single-digits for 2026, with beef specifically at high single-digit levels. January same-Shack sales grew 4.3% year-over-year. Guidance does not reflect potential changes to tariffs or the current macroeconomic environment.
SHAK YoY Financials
SHAK Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.