Shake Shack (SHAK) investor relations material

Executive summary

• Revenue grew 17.2% year-over-year to $417.6 million, driven by new Shack openings, positive same Shack sales growth for the 22nd consecutive quarter, and strong digital channel performance.

• Same Shack sales increased 3.5%, with positive traffic growth and price/mix contributions; digital sales rose over 30% year-over-year.

• Net income attributable to the company was $15.7 million, down from $18.5 million in the prior year; diluted EPS was $0.37.

• Opened 16 new company-operated and up to 11 new licensed locations during the quarter, with system-wide sales up 13.8% to $625.8 million.

• Maintained positive traffic growth for the fourth consecutive quarter, with digital and app sales as key contributors.

Financial highlights

• Restaurant-level profit was $92.7 million (23% of Shack sales), with margins down from 23.9% last year due to higher food and paper costs.

• Adjusted EBITDA was $61.2 million (14.7% of revenue), up 3.9% year-over-year.

• Net income margin was 4.0% of total revenue, compared to 5.2% last year.

• Ended the quarter with $308 million in cash and cash equivalents, $250 million in convertible notes, and full availability under a revolving credit facility.

• Capital expenditures increased to $104.9 million, reflecting development pipeline growth.

Outlook and guidance

• Annual guidance maintained; moving away from quarterly guidance to focus on long-term value creation.

• Adjusted EBITDA and net income expected at the low end of prior ranges due to persistent beef inflation and cost headwinds.

• Projected 60-65 new company-operated Shack openings and 40-45 new licensed Shacks for the year.

• Continued expansion with new store openings and focus on operational efficiency.

• Loyalty platform launch remains on track for 2026, with incremental impact expected in future years.