Shake Shack Inc. (SHAK): Results of Operations and Financial Condition
Shake Shack Inc. (SHAK) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Shake Shack Announces Second Quarter 2026 Financial Results ▪ Total revenue of $417.6 million, up 17.2% versus 2025, including $403.4 million of Shack sales and $14.2 million of Licensing revenue. ▪ System-wide sales of $625.8 million, up 13.8% versus 2025. ▪ Same-Sh
How this was made
The 30-second read
Why it matters
The filing provides the latest quarterly revenue, same-Shack sales, profitability, and unit growth figures that can drive estimate changes and near-term positioning.
Market read
Investors get a same-quarter snapshot of growth (revenue, system-wide sales, same-Shack sales) and profitability (operating income, net income, adjusted EBITDA) plus store openings.
What to watch
The excerpt emphasizes non-GAAP measures; traders may discount adjusted EBITDA and focus on GAAP operating income and net income trends, plus any commentary in the full shareholder letter not included here.
Total revenue of $417.6 million, up 17.2% versus 2025, while operating income was $20.7 million versus $22.4 million in 2025.
Revenue, system-wide sales and Same-Shack sales increased, and the Company opened 27 new Shacks. Operating income, net income and net income attributable to Shake Shack Inc. declined versus 2025, while the operating-income margin declined to 5.0% from 6.3%.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | $417,618 (in thousands) | – | up 17.2% versus 2025 |
| Shack salesGAAP | $403,437 (in thousands) | – | – |
| Licensing revenueGAAP | $14,181 (in thousands) | – | – |
| System-wide salesother | $625.8 million | – | up 13.8% versus 2025 |
| Same-Shack salesother | up 3.5% versus 2025 | – | up 3.5% versus 2025 |
| Food and paper costsGAAP | $116,276 (in thousands), 28.8% of Shack sales | – | – |
| Labor and related expensesGAAP | $101,226 (in thousands), 25.1% of Shack sales | – | – |
| Other operating expensesGAAP | $63,118 (in thousands), 15.6% of Shack sales | – | – |
| Occupancy and related expensesGAAP | $30,151 (in thousands), 7.5% of Shack sales | – | – |
| General and administrative expensesGAAP | $48,321 (in thousands), 11.6% of total revenue | – | – |
| Depreciation and amortization expenseGAAP | $30,717 (in thousands), 7.4% of total revenue | – | – |
| Pre-opening costsGAAP | $6,638 (in thousands), 1.6% of total revenue | – | – |
| Impairments, loss on disposal of assets, and Shack closuresGAAP | $425 (in thousands), 0.1% of total revenue | – | – |
| Total expensesGAAP | $396,872 (in thousands), 95.0% of total revenue | – | – |
| Restaurant-level profitnon-GAAP | $92.7 million, or 23.0% of Shack sales | – | – |
| Income from operationsGAAP | $20,746 (in thousands), 5.0% of total revenue | – | – |
| Other income, netGAAP | $2,602 (in thousands), 0.6% of total revenue | – | – |
| Interest expenseGAAP | $(553) (in thousands), (0.1)% of total revenue | – | – |
| Income before income taxesGAAP | $22,795 (in thousands), 5.5% of total revenue | – | – |
| Income tax expenseGAAP | $5,913 (in thousands), 1.4% of total revenue | – | – |
| Net incomeGAAP | $16,882 (in thousands), 4.0% of total revenue | – | – |
| Net income attributable to Shake Shack Inc.GAAP | $15,680 (in thousands), 3.8% of total revenue | – | – |
| Diluted earnings per share of Class A common stockGAAP | $0.37 | – | – |
| Adjusted EBITDAnon-GAAP | $61.2 million | – | up 3.9% versus 2025 |
| Adjusted pro forma net incomenon-GAAP | $18.9 million | – | – |
| Adjusted pro forma earnings per fully exchanged and diluted sharenon-GAAP | $0.43 | – | – |
| Net cash provided by operating activitiesGAAP | $65,462 (in thousands) | – | – |
| Purchases of property and equipmentGAAP | $(104,901) (in thousands) | – | – |
| Net cash used in investing activitiesGAAP | $(104,901) (in thousands) | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Shack salesAggregate sales of food, beverages, gift card breakage income and Shake Shack branded merchandise at Company-operated Shacks. | $403.4 million | – | – |
| Licensing revenueRevenue 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. | $14.2 million | – | – |
What drove it
- Total revenue was up 17.2% versus 2025.
- System-wide sales were up 13.8% versus 2025.
- Same-Shack sales were up 3.5% versus 2025.
- The Company opened 16 new Company-operated Shacks and 11 new licensed Shacks.
- Adjusted EBITDA was up 3.9% versus 2025.
Concerns
- Income from operations was $20.7 million versus $22.4 million in 2025.
- Net income was $16.9 million versus $18.5 million in 2025.
- Income from operations was 5.0% of total revenue versus 6.3% in 2025.
- Food and paper costs were 28.8% of Shack sales versus 28.2% in 2025.
- Other operating expenses were 15.6% of Shack sales versus 14.8% in 2025.
- General and administrative expenses were 11.6% of total revenue versus 11.4% in 2025.
- Net cash provided by operating activities for the twenty-six weeks ended July 1, 2026 was $65,462 (in thousands), versus $96,220 (in thousands).
What to watch
- Same-Shack sales performance following the reported 3.5% increase versus 2025.
- Restaurant-level profit margin, reported at 23.0% of Shack sales.
- Food and paper costs, reported at 28.8% of Shack sales.
- The pace of Company-operated and licensed Shack openings after 16 Company-operated and 11 licensed openings in the second quarter.
- Capital expenditures, with purchases of property and equipment of $(104,901) (in thousands) for the twenty-six weeks ended July 1, 2026.
Balance sheet and cash flow
- Cash and cash equivalents were $307,962 (in thousands) as of July 1, 2026, versus $360,123 (in thousands) as of December 31, 2025.
- Long-term debt was $248,255 (in thousands) as of July 1, 2026, versus $247,731 (in thousands) as of December 31, 2025.
- Total assets were $1,950,280 (in thousands) as of July 1, 2026, versus $1,896,209 (in thousands) as of December 31, 2025.
- Net cash provided by operating activities for the twenty-six weeks ended July 1, 2026 was $65,462 (in thousands), versus $96,220 (in thousands).
- Purchases of property and equipment for the twenty-six weeks ended July 1, 2026 were $(104,901) (in thousands), versus $(67,438) (in thousands).
Analysis
Shake Shack reported second-quarter total revenue of $417.6 million, up 17.2% versus 2025. Shack sales were $403.4 million and licensing revenue was $14.2 million. System-wide sales were $625.8 million, up 13.8% versus 2025, while Same-Shack sales increased 3.5% versus 2025. The Company opened 16 new Company-operated Shacks and 11 new licensed Shacks, adding a substantial development component to reported growth.
Profitability declined despite the revenue increase. Income from operations was $20.7 million, or 5.0% of total revenue, versus $22.4 million, or 6.3% of total revenue, in 2025. Net income was $16.9 million versus $18.5 million, and net income attributable to Shake Shack Inc. was $15.7 million versus $17.1 million. Diluted earnings per share of Class A common stock were $0.37 versus $0.41.
The expense mix shows several areas behind the lower operating result. Food and paper costs were 28.8% of Shack sales versus 28.2%, other operating expenses were 15.6% versus 14.8%, and general and administrative expenses were 11.6% of total revenue versus 11.4%. Labor and related expenses improved to 25.1% of Shack sales from 25.7%. Restaurant-level profit was $92.7 million, or 23.0% of Shack sales, and Adjusted EBITDA was $61.2 million, up 3.9% versus 2025.
For the twenty-six weeks ended July 1, 2026, net cash provided by operating activities was $65,462 (in thousands), compared with $96,220 (in thousands) in the prior-year period. Purchases of property and equipment were $(104,901) (in thousands), compared with $(67,438) (in thousands). Cash and cash equivalents were $307,962 (in thousands) at July 1, 2026, compared with $360,123 (in thousands) at December 31, 2025, while long-term debt was $248,255 (in thousands).
The release did not provide forward guidance. The central reported tradeoff is growth in total revenue, system-wide sales, comparable Shack sales and unit openings against lower GAAP operating income, net income and operating-income margin. Investors will focus on the durability of Same-Shack sales, the reported 23.0% restaurant-level profit margin, food and other operating-cost rates, and the level of property-and-equipment spending as the Company continues to add Company-operated and licensed Shacks.
Not in the filing
stated, not guessed- Forward revenue, margin, operating-expense, tax-rate, earnings, unit-growth or other guidance.
- Previous-period outlook and prior-guidance comparisons.
- Reported gross profit and gross margin.
- Quarterly operating cash flow, quarterly capital expenditures and quarterly free cash flow.
- Free cash flow for the twenty-six weeks ended July 1, 2026.
- Share repurchases, dividends, or other capital-return disclosures.
- Complete financing-activities cash-flow information, because the filing text is truncated after 'Net proceeds f'.
- Named executive quotations from the earnings materials.
- Prior-year Restaurant-level profit and Restaurant-level profit margin.
- Prior-year Adjusted pro forma net income and adjusted pro forma earnings per fully exchanged and diluted share.
- Prior-year Adjusted EBITDA amount.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The SEC 8-K reports Q2 2026 results of operations and financial condition for Shake Shack, including a shareholder letter and conference call details.
Ticker impact
Shake Shack filed an 8-K with Q2 2026 results showing revenue up 17.2% and same-Shack sales up 3.5% versus 2025.
Likely supportive for the stock versus a no-news baseline, with upside bias if investors focus on revenue growth and restaurant-level profit margin.
The filing includes multiple current-period growth and profitability figures (revenue, system-wide sales, same-Shack sales, operating income, net income, adjusted EBITDA) plus unit expansion (new company and licensed Shacks). No guidance or balance-sheet stress is provided in the excerpt, so the impact is likely moderate rather than a major repricing catalyst.
Market effects
Adds a data point on consumer discretionary restaurant demand and same-store sales momentum for burger/QSR peers.
Primarily US-focused unit growth and same-Shack sales, relevant to domestic QSR sentiment.
International licensing and system-wide sales growth can marginally influence sentiment toward global QSR franchising models.
Counterpoint
Operating income and net income declined versus 2025 despite revenue growth, suggesting margin pressure or higher costs that could cap upside.
Key entities
- companyShake Shack Inc.
Subject of the SEC 8-K, reporting Q2 2026 financial results and unit expansion.
- executiveRobert Lynch
CEO referenced as hosting the Q2 2026 conference call.
- executiveMichelle Hook
CFO referenced as hosting the Q2 2026 conference call.
