Shake Shack (SHAK) Q2 2025 earnings summary

Executive summary

• Total revenue for Q2 reached $356.5 million, up 12.6% year-over-year, driven by new Shack openings, higher menu prices, and operational improvements, with system-wide sales of $549.9 million, up 13.7%.

• Net income attributable to the company was $17.1 million ($0.41 per diluted share), up from $9.7 million in the prior year quarter; adjusted pro forma net income was $19.5 million ($0.44 per share).

• Opened 13 new domestic company-operated Shacks and 9 new licensed Shacks in Q2, bringing the total to over 610 system-wide, including drive-thru formats.

• Digital sales increased 16.6% to $122.5 million, representing 35.7% of Shack sales.

• Introduced new leadership and raised over $100,000 for communities impacted by floods, reflecting ongoing community engagement.

Financial highlights

• Shack sales were $343.2 million, up 12.4% year-over-year; licensing revenue rose 20.2% to $13.3 million.

• Restaurant-level profit reached $82.2 million (23.9% of Shack sales), up 190 basis points year-over-year, the highest since 2019.

• Adjusted EBITDA was $58.9 million, up 24.8% year-over-year, with a margin of 16.5%.

• Operating cash flow grew 21% year-over-year to $65 million; cash and equivalents at quarter-end were $336.8 million.

• Net cash provided by operating activities for the first half was $96.2 million, up from $84.2 million year-over-year.

Outlook and guidance

• 2025 guidance: 80–90 systemwide unit openings (45–50 company-operated, 35–40 licensed), low single-digit same Shack sales growth.

• Full-year total revenue expected at $1.4–$1.5 billion; restaurant-level profit margin of ~22.5%, up 110 basis points year-over-year.

• Adjusted EBITDA guidance raised to $210–$220 million (20–25% growth year-over-year).

• Three-year targets: revenue growth of at least low teens percent annually, 50+ basis points annual margin expansion, and low-to-high teens adjusted EBITDA growth.

• The company expects continued growth through new Shack openings and digital expansion, while monitoring inflationary pressures and labor costs.