Shake Shack (SHAK) trims Q2 2026 revenue and full-year profit guidance
Rhea-AI Filing Summary
Shake Shack Inc. updated its outlook for the fiscal second quarter and full year 2026 to reflect a tougher macro environment and competitive pressures while emphasizing that its core business drivers remain strong. For the quarter ending July 1, 2026, the Company now expects total revenue of $415–$420 million, down from prior guidance of $424–$428 million, with same-shack sales growth of 2.5%–3.0% versus 3.0%–5.0% previously.
Quarterly restaurant-level profit margin is now projected at 22.0%–23.0%, below the prior 24.0%–24.5% range, and company-operated openings are expected to be approximately 16, at the low end of the earlier 16–19 range. For fiscal 2026, Shake Shack now targets restaurant-level profit margin of 22.0%–23.0%, Adjusted EBITDA of $225–$235 million compared with $230–$245 million before, and net income of $45–$55 million versus $50–$60 million previously.
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Insights
Shake Shack trims 2Q and 2026 guidance, mainly on margins.
Shake Shack reduced its fiscal second quarter 2026 revenue guidance to $415–$420 million from $424–$428 million, with same-shack sales now expected at 2.5%–3.0%. The more notable change is restaurant-level profit margin, cut to 22.0%–23.0% from 24.0%–24.5%.
For full-year 2026, the Company now guides restaurant-level profit margin to 22.0%–23.0%, Adjusted EBITDA of $225–$235 million versus $230–$245 million prior, and net income of $45–$55 million versus $50–$60 million. Management cites macroeconomic uncertainty and competitive dynamics, while reiterating confidence in long-term strategic priorities.
Actual performance will depend on second half trends in traffic, pricing, and cost inflation, as well as execution on new Shack openings and licensed growth through December 30, 2026. Subsequent company updates may clarify whether these revisions prove conservative or require further adjustment.
8-K Event Classification
Key Figures
Key Terms
Same-shack sales financial
Restaurant-level profit margin financial
Adjusted EBITDA financial
System-wide sales financial
Forward-looking statements regulatory
Non-GAAP measure financial
UNITED STATES
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Item 7.01 Regulation FD Disclosure
On June 2, 2026, Shake Shack Inc. (the “Company”) issued a press release updating its guidance previously provided on May 7, 2026 for the second quarter and full year of fiscal 2026.
The full text of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
| 99.1 | Press release dated June 2, 2026 |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Shake Shack Inc. | ||
| (Registrant) | ||
| Dated: June 2, 2026 | By: | /s/ Michelle Hook |
|
Michelle Hook Chief Financial Officer | ||
EXHIBIT 99.1
Shake Shack Provides Fiscal Second Quarter 2026 Business Update
Management Updates Guidance
NEW YORK, NY (Business Wire) — June 2, 2026 — Shake Shack Inc. (“Shake Shack” or the “Company”) (NYSE: SHAK) provided a business update for the fiscal second quarter ending July 1, 2026 and fiscal year ending December 30, 2026, ahead of presenting at June investor conferences.
"Our updated guidance reflects the current macroeconomic uncertainty, competitive landscape, and related impacts now that we are more than two-thirds through the quarter, but it’s important to emphasize that our fundamental business drivers remain strong. We remain confident in our ability to execute our strategic priorities and deliver long-term shareholder value,” said CEO Rob Lynch.
Updated Fiscal Second Quarter Guidance Ending July 1, 2026:(1)
| Prior 2Q Guidance | Updated 2Q Guidance | |||
| Total revenue | $424 - $428 million | $415 - $420 million | ||
| Licensing revenue | $13.5 - $13.7 million | No change | ||
| Same-shack sales(2) | 3.0% to 5.0% | 2.5% to 3.0% | ||
| Restaurant-level profit margin(3) | 24.0% to 24.5% | 22.0% to 23.0% | ||
| Company-operated openings | 16 to 19 | Approximately 16 | ||
| Licensed openings | Approximately 8 | No change |
Updated Fiscal 2026 Financial Guidance for the Year Ending December 30, 2026:(1)
Any items not updated below remain the same as those previously provided.
| Prior FY Guidance | Updated FY Guidance | |||
| Restaurant-level profit margin(3) | 23.0% to 23.5% | 22.0% to 23.0% | ||
| Adjusted EBITDA(3) | $230 - $245 million | $225 - $235 million | ||
| Net income | $50 - $60 million | $45 - $55 million |
| (1) | Fiscal second quarter and fiscal year 2026 guidance is derived from preliminary and unaudited results based on information currently available to the Company and are subject to change based upon completion of the review of the 2026 second fiscal quarter. Guidance is subject to known and unknown risks, uncertainties and other important factors that may cause actual results to be materially different from the guidance provided. Factors that may cause differences include those discussed in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, the Company’s subsequent SEC filings, and our Cautionary Note on Forward-Looking Statements herein. |
| (2) | To normalize for the 53rd week in fiscal 2025, the compare period for 2025 was shifted forward a week from the fiscal calendar in order to show a more like-for-like comparison. |
| (3) | Restaurant-level profit margin and Adjusted EBITDA are non-GAAP measures. See below for full definitions and discussions of these measures. |
Definitions
The following definitions apply to these terms as used in this release:
"Shack sales" is defined as the aggregate sales of food, beverages, gift card breakage income and Shake Shack branded merchandise at Company-operated Shacks and excludes sales from licensed Shacks.
“System-wide sales” is an operating measure and consists of sales from Company-operated Shacks and licensed Shacks. The Company does not recognize the sales from licensed Shacks as revenue. Of these amounts, revenue is limited to licensing revenue based on a percentage of sales from licensed Shacks, as well as certain up-front fees, such as territory fees, opening fees, and termination fees.
"Same-Shack sales" represents Shack sales for the comparable Shack base, which is defined as the number of Company-operated Shacks open for 24 full fiscal months or longer. For consecutive days that Shacks were temporarily closed, the comparative period was also adjusted.
"Restaurant-level profit," a non-GAAP measure, is defined as Shack sales less Shack-level operating expenses including Food and paper costs, Labor and related expenses, Other operating expenses and Occupancy and related expenses.
"Restaurant-level profit margin," a non-GAAP measure, is defined as Shack sales less Shack-level operating expenses including Food and paper costs, Labor and related expenses, Other operating expenses and Occupancy and related expenses as a percentage of Shack sales.
"EBITDA," a non-GAAP measure, is defined as Net income (loss) before interest, expense (net of interest income), Income tax expense (benefit), and Depreciation and amortization expense.
“Adjusted EBITDA,” a non-GAAP measure, is defined as EBITDA (as defined above), excluding equity-based compensation expense, Impairments, loss on disposal of assets and Shack closures, amortization of cloud-based software implementation costs, as well as certain non-recurring items that the Company does not believe directly reflect its core operations and may not be indicative of the Company's recurring business operations.
"Adjusted pro forma net income," a non-GAAP measure, represents Net income attributable to Shake Shack Inc. assuming the full exchange of all outstanding SSE Holdings, LLC membership interests ("LLC Interests") for shares of Class A common stock, adjusted for certain non-recurring items that the Company does not believe are directly reflected to its core operations and may not be indicative of its recurring business operations.
When used in conjunction with GAAP financial measures, the non-GAAP measures included in this press release are supplemental measures of operating performance that the Company believes are useful measures to evaluate the performance and profitability of its Shacks, and are key metrics used internally by management to develop internal budgets and forecasts, as well as assess the performance of its Shacks relative to budget and against prior periods. The Company believes the presentation of these measures provides investors with a supplemental view of its operating performance that can provide meaningful insights to the underlying operating performance of the Company. These measures may differ from similarly titled measures used by other companies due to different methods of calculation, and presentation of these measures is not intended to be considered in isolation for, or superior to, the financial information prepared and presented in accordance with GAAP.
Cautionary Note on Forward-Looking Statements
This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to known and unknown risks, uncertainties and other important factors that may cause actual results to be materially different from the statements made herein. All statements other than statements of historical fact included in this press release are forward-looking statements, including, but not limited to, statements regarding the Company's strategic priorities and initiatives, fundamental drivers, development programs, and second quarter fiscal 2026 and full year fiscal 2026 financial guidance. Forward-looking statements discuss the Company’s current expectations, targets and projections relating to its financial position, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as "aim," "anticipate," "believe," "estimate," "expect," "forecast," "future," "intend," "outlook," "potential," "preliminary," "project," "projection," "plan,"
"seek," "target," "may," "could," "would," "will," "should," "can," "can have," "likely," the negatives thereof and other similar expressions. All forward-looking statements are expressly qualified in their entirety by these cautionary statements, and involve risks and uncertainties that could cause actual results or events to differ materially from those discussed in this press release. Some of the factors which could cause results to differ materially from the Company’s expectations or cause the Company to not meet its second quarter and full year guidance and long-term targets include the Company's ability to develop and open new Shacks on a timely basis, increased costs or shortages or interruptions in the supply and delivery of the Company's products, increased labor costs or shortages, inflationary pressures, interest rates, the impact of tariffs, volatility in financial markets and broader macroeconomic conditions, the impact of Shack closures, the impact of ongoing conflicts and related developments in the Middle East, the Company's management of its digital capabilities and expansion into delivery, as well as its kiosk, drive-thru and multiple format investments, risks associated with cyberattacks, data security and technology systems disruptions, the impact of adverse weather conditions, changes in consumer spending patterns, volatility in tourism and consumer travel, the Company's ability to maintain and grow sales at its existing Shacks, the performance and profitability of newly opened Shacks and licensed Shacks, risks associated with the Company’s international licensing operations, and risks relating to the restaurant industry generally. You should evaluate all forward-looking statements made in this press release in the context of the risks and uncertainties disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, the Company’s subsequent Quarterly Reports on Form 10-Q, and the Company's other SEC filings. All of the Company's SEC filings are available online at www.sec.gov, www.shakeshack.com or upon request from Shake Shack Inc. The forward-looking statements included in this press release are made only as of the date hereof and are based only on information currently available to the Company and do not reflect final results for any completed portions of the relevant periods, and you should not place undue reliance on these forward-looking statements. There can be no assurance that the results or developments currently anticipated by the Company will be realized, or that the Company will achieve its potential short-term or long-term targets as updated and currently in place. The Company undertakes no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.
About Shake Shack
Shake Shack serves elevated versions of American classics using only the best ingredients. It’s known for its delicious made-to-order Angus beef burgers, crispy chicken, hand-spun milkshakes, house-made lemonades, beer, wine, and more. With its high-quality food at a great value, warm hospitality, and a commitment to crafting uplifting experiences, Shake Shack quickly became a cult-brand with widespread appeal. Shake Shack’s purpose is to Stand For Something Good®, from its premium ingredients and employee development, to its inspiring designs and deep community investment. Since the original Shack opened in 2004 in NYC’s Madison Square Park, the Company has expanded to over 690 locations system-wide, including over 445 in 35 U.S. States and the District of Columbia, and over 245 international locations across London, Hong Kong, Shanghai, Singapore, Mexico City, Istanbul, Dubai, Tokyo, Seoul and more.
Skip the line with the Shack App, a mobile ordering app that lets you save time by ordering ahead! Guests can select their location, pick their food, choose a pickup time and their meal will be cooked-to-order and timed to arrival. Available on iOS and Android.
Learn more: shakeshack.com | IG: @shakeshack | X: @shakeshack | facebook.com/shakeshack
Media:
Meg Davis, Shake Shack
mcastranova@shakeshack.com
Investor Relations:
Alison Sternberg, Shake Shack
Head of Investor Relations
(844) SHACK-04 (844-742-2504)
investor@shakeshack.com