Shake Shack (SHAK) Q3 2025 earnings summary

Executive summary

• Achieved 19th consecutive quarter of positive same-store sales growth, with total revenue up 15.9% year-over-year to $367.4 million, driven by new Shack openings, higher menu prices, and strong restaurant-level and adjusted EBITDA margins.

• Net income attributable to the company was $12.5 million ($0.30 per diluted share), reversing a net loss in the prior year; adjusted pro forma net income was $15.9 million ($0.36 per share).

• Same-Shack sales rose 4.9% year-over-year, with a 3.6% increase in price mix and a 1.3% increase in guest traffic.

• Opened 13 new company-operated and 7 new licensed Shacks during the quarter, bringing the system-wide total to 630.

• Strategic focus on operational improvements, supply chain optimization, and culinary innovation drove improved guest satisfaction, team retention, and productivity.

Financial highlights

• Company-operated Shack sales rose 15.7% year-over-year to $352.8 million; licensing revenue increased 21.1% to $14.6 million.

• Restaurant-level profit reached $80.6 million (22.8% of Shack sales), up from $64.2 million and 21.0% margin last year.

• Adjusted EBITDA grew 18.2% year-over-year to $54.1 million (14.7% of total revenue).

• Net cash provided by operating activities for the nine months ended September 24, 2025 was $159.2 million, up from $126.1 million in the prior year.

• Net income margin was 3.7% of total revenue, compared to a net loss margin of 3.5% last year.

Outlook and guidance

• Q4 2025 guidance: total revenue of $406–$412 million, same-Shack sales up low single digits, licensing revenue of $15.4–$15.7 million.

• Full year 2025 guidance: total revenue of ~$1.45 billion (up ~16% year-over-year), same-Shack sales up low single digits, licensing revenue of $54.1–$54.5 million, restaurant-level profit margin of 22.7–23%.

• Adjusted EBITDA expected at $210–$215 million; net income of $50–$60 million.

• Accelerated new unit development, with plans to open 55–60 company-operated and 40–45 licensed Shacks in 2026.

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