Shake Shack Q2 revenue jumps 17.5% to $417.6M, returns to profitability; full-year guidance reaffirmed
SHAK sits 33% above its 52-week low of $51.6.
Summary
Shake Shack posted Q2 revenue of $417.6 million, up 17.5% year-over-year, with same-Shack sales rising 3.5% and a return to profitability. Full-year guidance was reaffirmed, signaling confidence after a turbulent Q1.
Key Events · Earnings and Guidance · SHAK
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Q2 Revenue and Profit Beat
Total revenue grew 17.5% to $417.6 million, with Shack sales up 17.5% and same-Shack sales up 3.5%. Net income was $16.9 million, a sharp reversal from the Q1 loss.
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Restaurant-Level Margin Pressure
Restaurant-level profit margin fell 90 bps to 23.0% as record-high beef costs (mid-teens inflation) and higher delivery commissions offset labor efficiencies.
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Full-Year Guidance Reaffirmed
Management reiterated FY2026 guidance: total revenue $1.6-$1.7 billion, adjusted EBITDA $225-$235 million, net income $45-$55 million, and 60-65 new Company-operated Shacks.
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Strong Unit Growth
Opened 16 Company-operated Shacks in Q2, the strongest second quarter on record, and remains on track for 60-65 openings in 2026.
Analysis · SHAK · Trade & Services
A strong second quarter saw revenue climb 17.5% to $417.6 million, with same-Shack sales up 3.5% and traffic turning positive at 2.0%. After a first-quarter loss, the company swung to net income of $16.9 million. Restaurant-level profit margin, however, compressed 90 basis points to 23.0% as record-high beef costs overwhelmed labor efficiencies. Management reaffirmed full-year guidance of $1.6–$1.7 billion in revenue and $225–$235 million in adjusted EBITDA, signaling confidence despite persistent commodity inflation and a challenging consumer environment. The results mark a sharp recovery from the Q1 miss and June guidance cut, and the stock may react positively to the stabilization and reaffirmed outlook.
At the time of this filing, SHAK was trading at $68.60 on NYSE in the Trade & Services sector, with a market capitalization of approximately $2.8B. The 52-week trading range was $51.60 to $117.60. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.