Shake Shack (SHAK) Q1 2026 earnings summary

Executive summary

• Total revenue grew 14.3% year-over-year to $366.7 million in Q1 2026, driven by strong same Shack sales, record new unit openings, and digital expansion.

• Same Shack sales increased 4.6% with 1.4% positive traffic and a 3.2% price mix increase, despite weather impacts.

• System-wide sales grew 14.1% to $558.3 million, with digital sales up 19.6% to $141.1 million, representing 39.9% of Shack sales.

• Adjusted EBITDA was $37 million, down 9.3% year-over-year, impacted by weather, macro factors, and higher pre-opening costs.

• Net loss attributable to the company was $0.3 million, or a loss of $0.01 per diluted share.

Financial highlights

• Restaurant-level profit margin expanded 50 basis points year-over-year to 21.2%, with profit at $75.1 million.

• Labor expenses improved by 180 basis points year-over-year due to efficient scheduling.

• Food and paper costs were $100 million (28.3% of Shack sales), up 50 basis points, mainly from promotional mix and beef inflation.

• G&A expenses rose to $53.6 million (14.6% of revenue), reflecting investments in marketing, technology, and people.

• Ended Q1 with $313.7 million in cash and cash equivalents.

Outlook and guidance

• Q2 2026 guidance: total revenue of $424–$428 million, same Shack sales up 3%–5%, restaurant-level margin of 24%–24.5%.

• Full-year 2026: 60–65 new company-operated Shacks, total revenue of $1.6–$1.7 billion, low single-digit same Shack sales growth, adjusted EBITDA of $230–$245 million.

• Licensing revenue expected at $57–$59 million, with 40–45 licensed Shack openings.

• Restaurant-level profit margin expected at 23%–23.5%.

• Management expects continued growth through new Shack openings and digital expansion.