Second Quarter 2026
Filed Aug 5, 2026Total 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.