Shake Shack Reports $400M Q4 Revenue Vs $408.98M Est, $1.45B in 2025 Sales Vs $1.45B Est, Guides $1.6–$1.7B for 2026 Vs $1.65B Est

Shake Shack Inc. ("Shake Shack" or the "Company") (NYSE:SHAK) provided a business update for the fiscal fourth quarter and fiscal year ended December 31, 2025 ahead of presenting at the 28th Annual ICR Conference today in Orlando, Florida. The Company also provided its initial fiscal 2026 outlook and reiterated its current long-term targets.

"Shake Shack team members have delivered strong 2025 business results despite a challenging macroeconomic environment. In January of 2025, we increased our total addressable market forecast from 450 Company-operated Shacks to 1500. I am pleased to share that in 2025, we opened 45 new Company-operated Shacks, and we currently have the largest pipeline of new Shacks in the Company's history. We now have 373 Company-operated restaurants and have guided to build another 55-60 Shacks in 2026. We continue to improve our returns on these Shacks by expanding operating margins, decreasing build costs, and most importantly, growing sales," said CEO Rob Lynch.

"In 4Q25, our same-Shack sales grew sequentially throughout the quarter. However, the last six weeks of the quarter did not meet our expectations due to inclement weather in some of our most heavily penetrated markets like the Northeast. Despite these short term challenges, we delivered positive same-Shack sales and positive traffic for the quarter. These results can be attributed to our culinary innovation, like the ‘Big Shack', our strategic value platforms like our ‘$1,$3,$5' in-app promotion, and the increase in traffic and brand awareness generated by our media investments," added Mr. Lynch.

"I cannot say enough about the exceptional work our restaurant leaders have done to strengthen operations and deliver meaningful margin improvement, all while enhancing both the team member and guest experience. These accomplishments are even more impressive given the inflationary environment in which we are operating, most notably ongoing beef cost pressures. Their disciplined execution and strategic leadership position us well to continue driving productivity and effectively navigate sustained elevated beef prices. In addition, our supply chain initiatives have reduced costs, improved product quality, and meaningfully mitigated single-supplier risk," said Lynch.

"Looking ahead to 2026, we will continue to drive top-line growth with culinary and marketing innovation, strategic promotions that improve our brand's value perception, and improved guest experiences. We will continue to expand margins with more efficient operations in both our restaurants and our supply chain. And we will continue to improve our cash returns by controlling build costs and optimizing kitchen designs. Lastly, and most importantly, we will continue to invest in our team member development to support our rapid restaurant growth. Long term, as we continue to accelerate and profitably scale our business, we expect that we will gain even more leverage, particularly on the G&A line," concluded Mr. Lynch.

The presentation at ICR will be held on Monday, January 12, 2026 at 8:30 a.m Eastern Time. Presenting from the Company will be Rob Lynch, Chief Executive Officer, Stephanie Sentell, Chief Operations Officer, Andrew McCaughan, Chief Development Officer and Michael Kark, President of Global Licensing. The presentation will be webcast live from the Company's Investor Relations website at investor.shakeshack.com on the Events & Presentations page.

Preliminary Unaudited Results for the Fiscal Fourth Quarter and Fiscal 2025 Year Ended December 31, 2025:(1)

• Total revenue of $400.5 million in 4Q25 and $1.45 billion in FY25.
  • Licensing revenue of $15.3 million in 4Q25 and $54.1 million in FY25.
• Same-Shack sales up 2.1% versus 2024 in 4Q25 and up 2.3% versus 2024 in FY25.
• Opened 45 new Company-operated Shacks in FY25, 15 of which opened in 4Q25. Opened 40 new licensed Shacks in FY25, 17 of which opened in 4Q25.

Updated Fiscal Fourth Quarter and Fiscal 2025 Guidance for the Year Ended December 31, 2025:(2)

• Restaurant-level profit margin(3) to be approximately 22.6% to 22.8% of Shack sales in 4Q25 and approximately 22.5% to 22.7% of Shack sales in FY25.
• General and administrative expenses to be approximately 12.1% to 12.3% of Total revenue in FY25.
• Equity-based compensation to be approximately $20.0 million in FY25.
• Depreciation and amortization expense to be approximately $106.0 million to $108.0 million in FY25.
• Pre-opening costs to be approximately $18.0 million in FY25.
• Net income to be approximately $50.0 million to $60.0 million in FY25.
• Adjusted EBITDA(3) to be approximately $208.0 million to $212.0 million in FY25.
• Adjusted Pro Forma Tax Rate to be approximately 26.0% to 27.0%.

Initial Fiscal 2026 Financial Guidance:

• Total revenue of $1.6 billion to $1.7 billion.
  • Licensing revenue of $59.0 million to $61.0 million.
• Same-Shack sales(4) of positive LSD%.
• Restaurant-level profit margin(3) to be 23.0% to 23.5% of Shack sales.
• General and administrative expenses to be 12.0% to 13.0% of Total revenue.
• Equity-based compensation to be approximately $28.0 million.
• Depreciation and amortization expense to be $128.0 million to $132.0 million.
• Pre-opening costs to be $25.0 million to $27.0 million.
• Net income to be $50.0 million to $60.0 million.
• Adjusted EBITDA(3) to be $237.0 million to $245.0 million.
• Adjusted Pro Forma Tax Rate to be approximately 24.0% to 25.0%.
• Company-operated openings to be approximately 55-60.
• Licensed openings to be approximately 40-45.

We are reiterating our long-term targets and believe we have the potential to achieve:

• Total addressable market of 1,500+ Company-operated Shacks.
• Three-year financial growth targets for FY2025 - FY2027:
  • Total revenue growth of low-teens %.
  • System-wide unit growth of low-teens %.
  • Restaurant-level profit margin(3) of at least 50 bps expansion per year.
  • Adjusted EBITDA(3) growth in the range of low to high-teens %.