Shake Shack (SHAK) Q1 2025 earnings summary

Executive summary

• Q1 2025 total revenue increased 10.5% year-over-year to $320.9 million, driven by new Shack openings, higher menu prices, and digital sales growth, despite macroeconomic and weather headwinds.

• Net income rose to $4.5 million (1.3% of revenue), up from $2.2 million in the prior year; adjusted EBITDA grew 13.5% to $40.7 million (12.7% margin).

• Opened four new company-operated Shacks (including two drive-thrus) and seven new licensed Shacks, bringing system-wide total to 589.

• Enhanced guest experience and productivity, with five consecutive quarters of improved speed of service and order accuracy.

• Strategic priorities include leadership development, operational excellence, comp sales growth, best-in-class returns, license business expansion, and long-term capability investment.

Financial highlights

• Restaurant-level profit margin expanded by 120 basis points to 20.7%, the highest since 2019, with profit up 17.3% year-over-year.

• Adjusted EBITDA margin was 12.7% of total revenue; adjusted pro forma net income was $6.4 million, or $0.14 per fully exchanged and diluted share.

• License revenue increased 11.1% to $11.1 million; company-operated Shack sales up 10.4% to $309.8 million.

• Digital sales mix increased to 38.1% of Shack sales, up 130 basis points year-over-year.

• Cash and cash equivalents at quarter end were $312.9 million.

Outlook and guidance

• Q2 2025 guidance: total revenue of $346–$353 million, licensing revenue $11.9–$12.3 million, 14–16 company-operated and 5–7 licensed Shack openings, low single-digit same-store sales growth.

• Restaurant-level profit margin expected at 23–23.5% in Q2, up 100–150 basis points year-over-year.

• Full-year 2025: total revenue of $1.4–$1.5 billion, 45–50 company-operated and 35–40 licensed Shack openings, restaurant-level profit margin of ~22.5%.

• Adjusted EBITDA guidance reiterated at $205–$215 million, representing 17–22% growth year-over-year.

• Three-year targets: double-digit revenue and adjusted EBITDA growth, at least 50 bps annual restaurant-level margin expansion.