Shake Shack (SHAK) Q2 2026 earnings summary

Executive summary

• Achieved 17.2% year-over-year revenue growth to $417.6 million, driven by new unit openings, positive same-store sales growth for the 22nd consecutive quarter, and strong digital channel expansion.

• Same-store sales increased 3.5% for the quarter, with positive traffic growth and price/mix contributions.

• Opened 16 new company-operated and up to 11 new licensed locations during the quarter, with 27 total new locations opened.

• Maintained positive traffic growth for the fourth straight quarter, with digital and app sales up nearly 30% year-over-year.

• Navigated record-high beef prices and elevated distribution costs, choosing to preserve value positioning over aggressive price increases.

Financial highlights

• Total revenue: $417.6 million (+17.2% YoY); company-operated Shack sales: $403.4 million (+17.5% YoY); licensing revenue: $14.2 million (+7.1% YoY).

• Restaurant-level profit: $92.7 million (23% of Shack sales); margins declined from 23.9% to 23.0% YoY due to higher food and paper costs.

• Adjusted EBITDA: $61.2 million (14.7% of revenue), up 3.9% YoY; net income: $15.7 million, down from $17.1 million YoY.

• Diluted EPS was $0.37 for the quarter; adjusted pro forma EPS was $0.43, flat year-over-year.

• Licensing sales: $222.4 million (+7.6% YoY); digital sales mix reached nearly 41% in Q2.

Outlook and guidance

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

• Expect tougher comps and continued beef inflation in the back half; adjusted EBITDA and net income anticipated at the low end of prior ranges.

• Pricing actions will be evaluated based on cost structure and traffic trends; approximately 2% pricing rolls off in August and 1.4% in December.

• Loyalty platform launch remains on track for 2026, with incremental impact expected in 2027.

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