Shake Shack (SHAK) Q4 2025 earnings summary

Executive summary

• Achieved 15.4% revenue growth to $1.45 billion in 2025, with 2.3% Same-Shack sales growth and 19.5% Adjusted EBITDA growth to $210 million.

• Opened 85 new Shacks system-wide in 2025, including 45 company-operated and 40 licensed, expanding into new domestic and international markets.

• Restaurant-level profit margin expanded by 120 basis points to 22.6%, driven by operational excellence and supply chain optimization.

• Launched successful culinary innovations and digital initiatives, including the $1, $3, $5 in-app value platform, boosting app downloads by 50%.

• Entered 2026 with strong momentum, reporting January Same-Shack sales up 4.3% YoY despite weather headwinds.

Financial highlights

• Q4 total revenue was $400.5 million, up 21.9% YoY; system-wide sales grew 23.4% YoY.

• Q4 Adjusted EBITDA grew over 20% YoY to $56.1 million (14% of total revenue); net income was $13.0 million; FY 2025 net income was $49.7 million.

• Licensing revenue in Q4 reached $15.2 million, up 26.4% YoY; FY licensing revenue was $54.1 million.

• Restaurant-level profit margin for Q4 was 22.7% of Shack sales; food and paper costs were 28.7% of Shack sales.

• Ended 2025 with $360.1 million in cash and $56.5 million in free cash flow.

Outlook and guidance

• Q1 2026 guidance: total revenue of $366–$370 million, Same-Shack sales up 3–5%, and restaurant-level profit margin of 21.5–22%.

• Full-year 2026: reiterates low single-digit inflation in food and paper costs, modest pricing (up ~3%), and continued supply chain savings.

• Plans to open 55–60 new company-operated Shacks and 14–18 system-wide units in Q1 2026.

• Three-year targets (2025–2027): low teens revenue and unit growth, at least 50 bps annual margin expansion, and low to high teens Adjusted EBITDA growth.

• Continued expansion with 85 new Shacks opened in FY 2025, supporting growth trajectory.