Shake Shack (NYSE:SHAK) Releases Quarterly Earnings Results, Beats Estimates By $0.06 EPS

by · The Cerbat Gem

Shake Shack (NYSE:SHAK – Get Free Report) announced its quarterly earnings data on Thursday. The company reported $0.40 EPS for the quarter, beating analysts’ consensus estimates of $0.34 by $0.06, Zacks reports. The company had revenue of $423.27 million for the quarter, compared to the consensus estimate of $426.41 million. Shake Shack had a net margin of 2.56% and a return on equity of 9.29%. The company’s quarterly revenue was up 15.2% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.36 EPS.

Here are the key takeaways from Shake Shack’s conference call:

  • Company-operated same-Shack sales rose 2.5%, including 0.8% traffic growth, extending the company’s streak to 23 quarters of positive comps and five quarters of positive traffic. Total revenue increased 15.2% and adjusted EBITDA rose 16% year over year.
  • Restaurant-level margin was 22.5%, down 30 basis points, as higher labor and delivery costs offset lower food and paper costs. Management expects full-year adjusted EBITDA to land toward the low end of its $225 million–$235 million target range.
  • Shake Shack opened a record 21 company-operated Shacks in the quarter and remains on track for 60–65 openings in 2026. New locations are initially less profitable and can weigh on comps, though management said they are tracking toward expected three-year returns.
  • Management described a challenging consumer backdrop, with higher-income guests supporting traffic while lower-income guests—particularly in urban markets—remain pressured. The company took an additional 1% price increase in October and expects to exit the year with about 2% gross pricing, while using targeted offers that reduce realized price-mix growth.
  • Licensed Shack sales increased 8.3% to $236.8 million, and management expects licensed openings to reach the high end of its 40–45 target for 2026. New licensed locations performed well in U.S. airports, Canada, and the U.K., with further expansion planned in markets including Brazil.

Shake Shack Stock Performance

NYSE SHAK opened at $72.02 on Friday. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.67 and a quick ratio of 1.64. The business has a 50 day simple moving average of $65.04 and a two-hundred day simple moving average of $74.38. Shake Shack has a 1-year low of $51.60 and a 1-year high of $107.46. The stock has a market capitalization of $3.08 billion, a PE ratio of 69.92, a P/E/G ratio of 7.76 and a beta of 1.75.

Key Headlines Impacting Shake Shack

Here are the key news stories impacting Shake Shack this week:

Wall Street Analyst Weigh In

Several analysts have commented on SHAK shares. Seaport Research Partners initiated coverage on shares of Shake Shack in a report on Wednesday, September 16th. They set a “neutral” rating on the stock. Weiss Ratings upgraded Shake Shack from a “hold (c-)” rating to a “hold (c)” rating in a research report on Monday. DA Davidson increased their target price on Shake Shack from $70.00 to $85.00 and gave the company a “buy” rating in a research report on Thursday, August 6th. Mizuho cut their price objective on shares of Shake Shack from $90.00 to $80.00 and set an “outperform” rating for the company in a research report on Friday, October 30th. Finally, Wells Fargo & Company upped their price objective on Shake Shack from $65.00 to $70.00 and gave the company an “equal weight” rating in a research report on Wednesday, October 21st. Sixteen research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company. Based on data from MarketBeat.com, Shake Shack has a consensus rating of “Moderate Buy” and an average target price of $87.00.

Read Our Latest Report on Shake Shack

Shake Shack Company Profile

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Shake Shack Inc operates a fast-casual restaurant chain known for made-to-order burgers, chicken sandwiches, hot dogs, crinkle-cut fries, frozen custard, milkshakes and beverages. Its menu also includes vegetarian and other specialty items, with offerings varying by location. The company emphasizes hospitality, quality ingredients and restaurant designs intended to support both dine-in and takeout service.

The business began as a temporary hot dog cart in Madison Square Park in New York City in 2001 and opened its first permanent restaurant there in 2004.

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