Track market-moving stories before they get noisy

Investors interested in stocks from the Retail - Restaurants sector have probably already heard of Bloomin' Brands (BLMN) and Shake Shack (SHAK). But which of these two companies is the best option for those looking for undervalued stocks?

Food inflation has become one of those problems that refuses to disappear when politicians declare victory over it. Beef is a perfect example. The average price of ground beef reached $6.89 per pound in July, according to the Federal Reserve Bank of St. Louis, up from $5.55 in January 2025. 

President Donald Trump now wants to put a temporary lid on that increase by easing tariffs on imported ground beef. The problem for investors is that the policy attacks the symptom, not the supply shortage — and may simply postpone until after the midterm elections the inflation it is trying to cure.

The Tariff Reversal Is Notable Trump announced on Truth Social that the U.S. would allow as much as 300,000 metric tons of ground beef imports over the next 90 days without the higher out-of-quota tariff. He also said there is a commitment to sell the imported beef at 25% below current market prices.

Trump blamed Biden-era inflation for today’s beef prices. But his own policy change carries an awkward implication: if removing a tariff can lower prices, imposing that tariff can raise them.

While ground beef rose roughly 39% from the approximately $4-per-pound level early in the Biden administration to $5.55 by January 2025, during Trump’s second term, the average price has climbed another roughly 24% to $6.89.

In other words, Trump’s 90-day tariff pause essentially removes part of the inflationary pressure his administration’s trade policy helped create. That is useful for consumers, but it is hardly a structural solution.

A temporary tariff pause offers relief today, but a shrinking U.S. cattle herd ensures the inflationary pain returns once the band-aid is ripped off. America’s Cattle Problem Can’t Be Fixed in 90 Days U.S. cattle herds remain constrained. The USDA’s July Cattle report counted 94.2 million cattle and calves, while the beef-cow herd stood at 28.5 million, down 1% from a year earlier. The 2026 calf crop was also projected at 32.5 million, down 2%.

Trump says the import pause will “give space for the Great American Beef Herd to grow again.” But cattle cannot be manufactured like semiconductors.

A beef animal generally requires 18 to 24 months to reach slaughter weight. More importantly, rebuilding the breeding herd creates an even longer lag. A rancher must retain a heifer instead of selling her, breed her, raise her first calf and eventually send that offspring through the beef supply chain. The process can take at least three years.

That creates a nasty incentive problem. Cheap imports may lower prices today, but they also threaten the profitability ranchers need to justify retaining heifers tomorrow. The American Farm Bureau Federation has warned that relying heavily on imports can undermine domestic production incentives.

Granted, the administration has paired its policy with expanded Small Business Administration lending for ranchers and other measures intended to reduce operating friction, including changes involving livestock identification and predator protections. But cheaper feed, more favorable financing and regulatory relief cannot turn a calf into a finished animal overnight.

Investors Should Watch for Winners and Losers The immediate beneficiaries are companies that buy enormous quantities of beef. Lower wholesale costs can widen margins for restaurant operators such as McDonald’s (NYSE:MCD | MCD Price Prediction), Shake Shack (NYSE:SHAK), and Chipotle Mexican Grill (NYSE:CMG). Broadline distributors including Sysco (NYSE:SYY) and US Foods Holding (NYSE:USFD) also stand to benefit if procurement costs fall.

The opposite pressure falls on domestic processors. Tyson Foods (NYSE:TSN), for example, recently reported a $142 million quarterly loss in its beef segment as cattle costs rose $525 million and volume fell 16%. Tyson also faces a Justice Department criminal antitrust investigation alongside other major meatpackers.

Key Takeaway In short, investors should treat this as a 90-day price Band-Aid, not a cure for beef inflation. The tariff pause could give consumers and restaurant companies temporary relief, but it does nothing to shorten the cattle-production cycle or reduce the cost of raising livestock.

When tariffs return after the midterm elections while the herd remains constrained, beef inflation can return with them. For shareholders, the better opportunity is to watch companies benefiting from lower input costs — while remembering that today’s cheaper hamburger may simply be borrowing supply from tomorrow.

Contact [email protected] for any questions or corrections.

Opting for the “no tip” button might not be saving you money, at least at one particular restaurant.

Investors Are Buying Into Sweetgreen Again—Should They?Shake Shack NYSE: SHAK reported second-quarter 2026 revenue growth of 17.2% as new restaurant openings, positive comparable sales and licensing gains offset pressure from elevated beef, distribution and operating costs.

Total revenue rose to $417.6 million, while company-operated Shack sales increased 17.5% to $403.4 million. Same-Shack sales grew 3.5%, consisting of 2% traffic growth and 1.5% price and mix. The company estimated that World Cup-related activity contributed roughly 90 basis points to comparable sales during the quarter.

Get Shake Shack alerts:

MarketBeat Week in Review – 05/11 - 05/15CEO Rob Lynch said the company delivered its fourth consecutive quarter of positive traffic growth and its 22nd straight quarter of positive comparable sales growth. He said Shake Shack’s approach remains focused on culinary innovation, targeted marketing and digital engagement rather than broad discounting.

Digital channels and menu innovation support traffic Digital sales represented nearly 41% of sales in the second quarter. Comparable app sales increased nearly 30% year over year, according to Lynch, while the app accounted for just over 10% of total channel mix, CFO Michelle Hook said. Management said app customers visit more frequently and spend more annually, and characterized the channel as its fastest-growing and most incremental source of traffic.

Shake Shack Stock Gets Shaken After Earnings MissThe company has used targeted offers across its app and delivery channels to drive customer acquisition and repeat visits. Lynch said incentives are concentrated in digital channels, where Shake Shack sees less cannibalization than with broader promotions. The company plans to expand lifecycle marketing in the second half through behavior-based communications, targeted offers and automated customer journeys.

Shake Shack remains committed to launching its loyalty platform in 2026, though Lynch said it is not expected to be a meaningful revenue contributor this year because the company will initially test and refine the program. Management said it intends for loyalty to extend its “enlightened hospitality” strategy rather than operate solely as a points-based discount program.

On the menu, the barbecue platform featuring the Baby Back Rib Sandwich met expectations, Lynch said. The company has also made the Big Shack a core menu item after strong customer demand, though it has repriced the burger more consistently with its double-burger platform. Lynch said the prior $9.99 price point led to some trade-down from double burgers and created revenue and margin dilution.

Shake Shack introduced a West Coast-inspired menu platform in July, returned the Dubai Chocolate Pistachio Shake and is testing additional chicken and smoked brisket offerings. Management said limited-time offerings can serve different objectives, including traffic generation, trial or higher average checks.

Margins pressured by beef and operating costs Restaurant-level profit totaled $92.7 million, or 23% of Shack sales, down 90 basis points from the prior-year period. Food and paper costs rose 60 basis points to 28.8% of Shack sales, largely reflecting record-high beef prices, promotional activity and a mix shift toward higher-cost menu items.

Blended food and paper inflation was in the low single digits, while beef costs rose by the mid-teens, Hook said. Labor and related expenses improved 60 basis points to 25.1% of Shack sales, aided by labor-management initiatives and operating efficiencies. Other operating expenses increased 80 basis points to 15.6% of Shack sales, driven primarily by delivery commissions, professional-service fees and travel and training associated with the higher pace of openings.

Management expects beef inflation to remain elevated in the second half, though Hook said it should be less pronounced than in the first half. The company also expects continued low-single-digit labor inflation and ongoing pressure from food and operating expenses.

Adjusted EBITDA rose 3.9% year over year to $61.2 million, or 14.7% of revenue. Net income attributable to Shake Shack was $15.7 million, down 8.6% from the prior-year quarter. The company ended the quarter with $308 million in cash and cash equivalents, $250 million of convertible notes outstanding and full availability under its revolving credit facility.

Expansion remains central to growth strategy Shake Shack opened 16 company-operated locations during the quarter, bringing year-to-date openings to 33. The company reiterated its plan to open 60 to 65 company-operated Shacks in 2026. The second-quarter openings were all in existing markets, where management said it continues to see significant whitespace.

Hook said recent new classes of Shacks have generated cash-on-cash returns above 30%. Lynch said the company intends to maintain its development pace and anticipates an even higher number of openings in 2027 as the store base expands.

The licensed business added eight net new Shacks during the quarter. Licensing sales rose 7.6% to $222.4 million and licensing revenue increased 7.1% to $14.2 million. Performance was strong in U.S. airports, Canada, the United Kingdom and parts of China, partially offsetting continued weakness in the United Arab Emirates amid conflict in the Middle East. Shake Shack continues to expect 40 to 45 licensed openings this year.

Management also said it is evaluating additional restaurant formats, including smaller locations with less seating and potentially lower build costs. Lynch said drive-thru locations can work in select real estate opportunities, but are not expected to become the company’s primary development format because Shake Shack is focused on premium food and in-Shack hospitality.

Annual outlook maintained, with profitability at low end Shake Shack said it is maintaining its previously disclosed full-year guidance but expects adjusted EBITDA and net income to land at the low end of their respective ranges, reflecting persistent cost headwinds. During the question-and-answer session, management referenced adjusted EBITDA guidance of $225 million to $235 million.

The company expects tougher sales comparisons in the second half, as it laps marketing and value initiatives introduced in the back half of 2025. Still, management reiterated its goal of low-single-digit same-Shack sales growth for the full year and said it remains focused on sustaining positive traffic through marketing, digital engagement and menu innovation.

Going forward, Shake Shack will stop issuing quarterly guidance and instead provide annual guidance, Hook said. The company said the change is intended to emphasize long-term management and multi-year value creation over quarterly volatility.

About Shake Shack (NYSE:SHAK)Shake Shack, Inc NYSE: SHAK is a publicly traded hospitality company known for its modern take on the classic American roadside burger stand. The company operates a chain of quick-casual restaurants offering premium hamburgers, hot dogs, crinkle-cut fries, frozen custard, milkshakes and a curated selection of beer and wine. Shake Shack emphasizes high-quality ingredients, including 100% all-natural Angus beef with no hormones or antibiotics, and works with local suppliers where possible to maintain its commitment to fresh, responsibly sourced food.

Shake Shack traces its origins to a hot dog cart opened in New York City's Madison Square Park in 2001 by Danny Meyer's Union Square Hospitality Group.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Should You Invest $1,000 in Shake Shack Right Now?Before you consider Shake Shack, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Shake Shack wasn't on the list.

While Shake Shack currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

The AI wave will soon hit public markets with Anthropic and OpenAI set to go public later this year. However, you don't have to wait to invest. This report shows seven AI stocks that you can buy today while the big model providers get ready to go public.

Get This Free Report

Key Takeaways Shake Shack's Q2 adjusted EPS of 43 cents beat estimates, while revenues rose 17.2% YoY to $417.6 million.SHAK's same-Shack sales increased 3.5%, traffic rose 2%, and digital sales reached nearly 41% of sales.Shake Shack expects EBITDA and net income at the low end of guidance amid beef inflation and competition. Shake Shack Inc. (SHAK - Free Report) reported second-quarter fiscal 2026 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top line increased year over year, while adjusted earnings declined.

The company reported solid demand, with same-Shack sales increasing 3.5% and traffic rising 2%. New Shack openings supported double-digit revenue growth, but record-high beef costs and higher operating expenses weighed on restaurant-level margins.

SHAK’s Q2 Earnings & RevenuesFor the fiscal second quarter, the company reported adjusted earnings of 43 cents per share, beating the Zacks Consensus Estimate of 31 cents by 38.71%. Adjusted earnings declined 2.3% from 44 cents per share in the prior-year quarter.

Quarterly revenues of $417.6 million missed the consensus mark of $418 million by 0.04%. The top line increased 17.2% from $356.5 million reported in the year-ago quarter.

Shake Shack’s Q2 Sales and TrafficIn the fiscal second quarter, Shack sales increased 17.5% year over year to $403.4 million from $343.2 million. Our estimate for the metric was 412 million.

Licensing revenues rose 7.1% to $14.2 million from $13.2 million. Our estimate for the metric was 13.7 million.

System-wide sales advanced 13.8% to $625.8 million. Average weekly sales were approximately $78,000, unchanged from the prior-year quarter.

Management estimated that the World Cup contributed approximately 90 basis points to comparable sales. In-Shack menu pricing increased 3.7%, while blended pricing across all channels rose 4.4%. Comparable app channel sales grew nearly 30% year over year, and digital sales represented almost 41% of Shack sales.

SHAK’s Q2 Restaurant-Level PerformanceIn the fiscal second quarter, restaurant-level profit increased 12.8% year over year to $92.7 million from approximately $82.2 million. However, restaurant-level profit margin contracted 90 basis points to 23% of Shack sales from 23.9%.

Food and paper costs increased 20.3% year over year to $116.3 million from $96.6 million. As a percentage of Shack sales, these expenses rose 60 basis points year over year to 28.8%, reflecting higher commodity costs, promotional activity and a shift toward higher-cost menu items.

Beef, which represents approximately 35% of the food and paper basket, experienced mid-teens inflation. Total blended food and paper inflation was in the low-single-digit range during the quarter. Labor and related expenses increased 15% year over year to $101.2 million.

Shake Shack’s Q2 Operating Costs and ProfitabilityOther operating expenses in the fiscal second quarter increased 24.3% year over year to $63.1 million and rose 80 basis points year over year to 15.6% of Shack sales. The increase primarily reflected higher delivery commissions. Occupancy expenses increased 17.8% year over year to $30.2 million.

Operating income declined 7.3% year over year to $20.7 million. Our estimate for the metric was $23.9 million.

Net income attributable to Shake Shack decreased 8.6% year over year to $15.7 million. Our estimate for the metric was $17.5 million.

Adjusted EBITDA increased 3.9% year over year to $61.2 million from $58.9 million reported in the year-ago quarter. However, the adjusted EBITDA margin contracted 180 basis points year over year to 14.7%.

General and administrative expenses rose 18.8% year over year to $48.3 million. Depreciation and amortization increased 15.7% year over year to $30.7 million, while preopening costs climbed 34% to $6.6 million.

SHAK’s Development and Licensed BusinessShake Shack opened 16 company-operated Shacks during the quarter, up 23.1% from 13 openings in the prior-year period. This marked the company’s strongest second-quarter development performance on record and brought year-to-date company-operated openings to 33.

The company opened 11 licensed Shacks, up 22.2% from nine a year earlier, and closed three locations. This resulted in eight net licensed additions.

The system-wide Shack count increased 15.2% year over year to 703 from 610. Licensing sales rose 7.6% to $222.4 million from $206.7 million, supported by U.S. airports, Canada, the United Kingdom and parts of China.

Continued conflict in the Middle East pressured the United Arab Emirates, historically Shake Shack’s highest-volume market in the region. The company maintained its target of 60-65 company-operated openings and 40-45 licensed openings in fiscal 2026.

Shake Shack’s Cash Position and ’26 OutlookShake Shack ended the quarter with $308 million in cash and cash equivalents, down 8.6% from $336.8 million a year earlier. Net cash provided by operating activities for the first half declined 32% year over year to $65.5 million.

Management maintained its full-year outlook but expects adjusted EBITDA and net income to finish at the low end of their respective guidance ranges. Beef inflation, tougher comparisons and competitive intensity are expected to remain headwinds in the second half.

For 2026, Shake Shack expects total revenues of $1.6 billion to $1.7 billion and licensing revenues of $57 million to $59 million. Same-Shack sales are projected to increase in the low-single-digit percentage range from 2025.

The company expects a restaurant-level profit margin of 22% to 23%. General and administrative expenses are projected at 12% to 13% of total revenues. Depreciation and amortization expenses are forecast between $124 million and $128 million. Preopening costs are expected in the range of $26 million to $28 million.

Shake Shack projects net income of $45 million to $55 million and adjusted EBITDA of $225 million to $235 million. Management expects both measures to finish at the low end of their respective guidance ranges. The adjusted pro forma tax rate is projected between 25% and 27%.

SHAK’s Zacks RankShake Shack currently has a Zacks Rank #3 (Hold).

Stocks to ConsiderHere are some better-ranked stocks from the Zacks Retail-Wholesale sector:
 
BJ's Restaurants, Inc. (BJRI - Free Report) currently sports a Zacks Rank #1 (Strong Buy). The company delivered a trailing four-quarter earnings surprise of 127.9%, on average. BJRI stock has risen 54.9% in the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.

 The Zacks Consensus Estimate for BJ's Restaurants’ 2026 sales and EPS indicates year-over-year growth of 4% each, respectively.

Five Below, Inc. (FIVE - Free Report) presently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 70.1%, on average. FIVE stock has gained 7% in the past six months.

 The Zacks Consensus Estimate for Five Below’s 2027 sales and EPS indicates growth of 23.9% and 36.1%, respectively, from the year-ago period’s levels.

 FIGS, Inc. (FIGS - Free Report) has a Zacks Rank #2 at present. The company delivered a trailing four-quarter earnings surprise of 212.5%, on average. FIGS stock has inched up 1.7% in the past six months.

 The Zacks Consensus Estimate for FIGS’ 2026 sales and EPS indicates growth of 15.5% and 36.8%, respectively, from the prior-year levels.

A weekly, midday program that delivers high-impact, editorially driven coverage of the most important corporate transactions shaping the global market. Today's guests: Starboard CEO Jeff Smith, Salesforce Ventures Managing Director Emily Zhao, Dell Technologies Capital Managing Director Daniel Doctor, Breakout Ventures Co-Founder & Managing Partner Julia Moore, White & Case Global Co-Head of M&A Kimberly Petillo-Décossard, and DGB Investments Founder Douglas Bergerson.

Starboard Value CEO Jeff Smith explains why his firm has built a new stake in Shake Shack. Speaking with Dani Burger on "Bloomberg Deals," Smith also discusses his firm's stakes in Lamb Weston and CarMax.

Shake Shack reported higher second-quarter sales, but profit slipped as operating expenses increased.

NEW YORK--(BUSINESS WIRE)--Shake Shack Inc. (“Shake Shack” or the “Company”) (NYSE: SHAK) has posted its results for the second quarter of 2026 in a Shareholder Letter in the Quarterly Results section of the Company's Investor Relations website, which can be found here: Q2 2026 Shake Shack Shareholder Letter.

Shake Shack will host a conference call at 8:00 a.m. ET. Hosting the call will be Robert Lynch, Chief Executive Officer, and Michelle Hook, Chief Financial Officer. The conference call can be accessed live over the phone by dialing (877) 407-0792, or for international callers by dialing (201) 689-8263. A replay of the call will be available until August 12, 2026 by dialing (844) 512-2921 or for international callers by dialing (412) 317-6671; the passcode is 13760719.

The live audio webcast of the conference call will be accessible in the Events & Presentations section on the Company's Investor Relations website at investor.shakeshack.com. An archived replay of the webcast will also be available shortly after the live event has concluded.

About Shake Shack

Shake Shack serves elevated versions of American classics using only the best ingredients. It's known for its delicious made-to-order Angus beef burgers, crinkle cut fries, crispy chicken, hand spun milkshakes, house-made lemonades, and more. With its high-quality food at a great value, warm hospitality, and a commitment to crafting uplifting experiences, Shake Shack quickly became a cult-brand with widespread appeal. Shake Shack's purpose is to Stand For Something Good®, from its premium ingredients and team member development to its inspiring designs and deep community investment. Since the original Shack opened in 2004 in NYC's Madison Square Park, the Company has expanded to over 710 locations system-wide, including approximately 460 in 35 U.S. States and the District of Columbia, and over 250 international locations across London, Hong Kong, Shanghai, Singapore, Mexico City, Istanbul, Dubai, Tokyo, Seoul and more.

Skip the line with the Shack App, a mobile ordering app that lets you save time by ordering ahead! Guests can select their location, pick their food, choose a pickup time and their meal will be cooked-to-order and timed to arrival. Available on iOS and Android.

Definitions

The following definitions apply to these terms as used in this release:

"Shack sales" is defined as the aggregate sales of food, beverages, gift card breakage income and Shake Shack branded merchandise at Company-operated Shacks and excludes sales from licensed Shacks.

“System-wide sales” is an operating measure and consists of sales from Company-operated Shacks and licensed Shacks. The Company does not recognize the sales from licensed Shacks as revenue. Of these amounts, revenue is limited to licensing revenue based on a percentage of sales from licensed Shacks, as well as certain up-front fees, such as territory fees, opening fees, and termination fees.

"Same-Shack sales" represents Shack sales for the comparable Shack base, which is defined as the number of Company-operated Shacks open for 24 full fiscal months or longer. For consecutive days that Shacks were temporarily closed, the comparative period was also adjusted.

"Restaurant-level profit," a non-GAAP measure, is defined as Shack sales less Shack-level operating expenses including Food and paper costs, Labor and related expenses, Other operating expenses and Occupancy and related expenses.

"Restaurant-level profit margin," a non-GAAP measure, is defined as Shack sales less Shack-level operating expenses including Food and paper costs, Labor and related expenses, Other operating expenses and Occupancy and related expenses as a percentage of Shack sales.

“EBITDA,” a non-GAAP measure, is defined as Net income before interest expense (net of interest income), Income tax expense, and Depreciation and amortization expense.

“Adjusted EBITDA,” a non-GAAP measure, is defined as EBITDA (as defined above), excluding equity-based compensation expense, Impairments, loss on disposal of assets, and Shack closures, amortization of cloud-based software implementation costs, as well as certain non-recurring items that the Company does not believe directly reflect its core operations and may not be indicative of the Company's recurring business operations.

"Adjusted pro forma net income," a non-GAAP measure, represents Net income attributable to Shake Shack Inc. assuming the full exchange of all outstanding SSE Holdings, LLC membership interests ("LLC Interests") for shares of Class A common stock, adjusted for certain non-recurring items that the Company does not believe are directly related to its core operations and may not be indicative of its recurring business operations.

SHAKE SHACK INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

(in thousands, except share and per share amounts)

    July 1
2026

  December 31
2025

ASSETS

    Current assets:

    Cash and cash equivalents

  $

307,962

  $

360,123

Accounts receivable, net

  34,657

  32,962

Inventories

  7,359

  7,182

Prepaid expenses and other current assets

  43,780

  30,080

Total current assets

  393,758

  430,347

Property and equipment, net of accumulated depreciation of $604,230 and $551,004, respectively.

  673,299

  625,851

Operating lease assets

  551,687

  507,253

Deferred income taxes, net

  319,980

  322,385

Other assets

  11,556

  10,373

TOTAL ASSETS

  $

1,950,280

  $

1,896,209

LIABILITIES AND STOCKHOLDERS' EQUITY

    Current liabilities:

    Accounts payable

  $

23,612

  $

24,747

Accrued expenses

  92,318

  103,354

Accrued wages and related liabilities

  23,175

  25,481

Operating lease liabilities, current

  67,164

  63,553

Other current liabilities

  29,732

  27,783

Total current liabilities

  236,001

  244,918

Long-term debt

  248,255

  247,731

Long-term operating lease liabilities

  621,756

  575,138

Liabilities under tax receivable agreement, net of current portion

  244,713

  244,463

Other long-term liabilities

  28,004

  30,210

Total liabilities

  1,378,729

  1,342,460

Commitments and contingencies

    Stockholders' equity:

    Preferred stock, no par value—10,000,000 shares authorized; none issued and outstanding as of July 1, 2026 and December 31, 2025.

  —

  —

Class A common stock, $0.001 par value—200,000,000 shares authorized; 40,370,460 and 40,254,281 shares issued and outstanding as of July 1, 2026 and December 31, 2025, respectively.

  40

  40

Class B common stock, $0.001 par value—35,000,000 shares authorized; 2,425,789 and 2,434,789 shares issued and outstanding as of July 1, 2026 and December 31, 2025, respectively.

  2

  2

Additional paid-in capital

  456,186

  452,577

Retained earnings

  88,099

  72,709

Accumulated other comprehensive loss

  (6

)

  (1

)

Total stockholders' equity attributable to Shake Shack Inc.

  544,321

  525,327

Non-controlling interests

  27,230

  28,422

Total equity

  571,551

  553,749

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

  $

1,950,280

  $

1,896,209

SHAKE SHACK INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

(in thousands, except per share amounts)

    Thirteen Weeks Ended

  Twenty-Six Weeks Ended

  July 1
2026

  June 25
2025

  July 1
2026

  June 25
2025

Shack sales

  $

403,437

  96.6

%

  $

343,224

  96.3

%

  $

757,484

  96.6

%

  $

653,062

  96.4

%

Licensing revenue

  14,181

  3.4

%

  13,242

  3.7

%

  26,871

  3.4

%

  24,302

  3.6

%

TOTAL REVENUE

  417,618

  100.0

%

  356,466

  100.0

%

  784,355

  100.0

%

  677,364

  100.0

%

Shack-level operating expenses(1):

                Food and paper costs

  116,276

  28.8

%

  96,621

  28.2

%

  216,299

  28.6

%

  182,658

  28.0

%

Labor and related expenses

  101,226

  25.1

%

  88,058

  25.7

%

  193,943

  25.6

%

  174,726

  26.8

%

Other operating expenses

  63,118

  15.6

%

  50,768

  14.8

%

  120,630

  15.9

%

  99,030

  15.2

%

Occupancy and related expenses

  30,151

  7.5

%

  25,593

  7.5

%

  58,805

  7.8

%

  50,224

  7.7

%

General and administrative expenses

  48,321

  11.6

%

  40,671

  11.4

%

  101,929

  13.0

%

  81,311

  12.0

%

Depreciation and amortization expense

  30,717

  7.4

%

  26,545

  7.4

%

  59,837

  7.6

%

  53,088

  7.8

%

Pre-opening costs

  6,638

  1.6

%

  4,955

  1.4

%

  13,508

  1.7

%

  8,173

  1.2

%

Impairments, loss on disposal of assets, and Shack closures

  425

  0.1

%

  881

  0.2

%

  1,292

  0.2

%

  2,938

  0.4

%

TOTAL EXPENSES

  396,872

  95.0

%

  334,092

  93.7

%

  766,243

  97.7

%

  652,148

  96.3

%

INCOME FROM OPERATIONS

  20,746

  5.0

%

  22,374

  6.3

%

  18,112

  2.3

%

  25,216

  3.7

%

Other income, net

  2,602

  0.6

%

  2,850

  0.8

%

  5,345

  0.7

%

  5,821

  0.9

%

Interest expense

  (553

)

  (0.1

)%

  (548

)

  (0.2

)%

  (1,101

)

  (0.1

)%

  (1,111

)

  (0.2

)%

INCOME BEFORE INCOME TAXES

  22,795

  5.5

%

  24,676

  6.9

%

  22,356

  2.9

%

  29,926

  4.4

%

Income tax expense

  5,913

  1.4

%

  6,193

  1.7

%

  5,768

  0.7

%

  6,930

  1.0

%

NET INCOME

  16,882

  4.0

%

  18,483

  5.2

%

  16,588

  2.1

%

  22,996

  3.4

%

Less: Net income attributable to non-controlling interests

  1,202

  0.3

%

  1,335

  0.4

%

  1,198

  0.2

%

  1,603

  0.2

%

NET INCOME ATTRIBUTABLE TO SHAKE SHACK INC.

  $

15,680

  3.8

%

  $

17,148

  4.8

%

  $

15,390

  2.0

%

  $

21,393

  3.2

%

Earnings per share of Class A common stock:

                Basic

  $

0.39

    $

0.43

    $

0.38

    $

0.53

  Diluted

  $

0.37

    $

0.41

    $

0.37

    $

0.51

  Weighted-average shares of Class A common stock outstanding:

                Basic

  40,358

    40,226

    40,323

    40,173

  Diluted

  41,866

    41,819

    41,873

    41,842

  SHAKE SHACK INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

(in thousands)

      Twenty-Six Weeks Ended

  July 1
2026

  June 25
2025

OPERATING ACTIVITIES

    Net income (including amounts attributable to non-controlling interests)

  $

16,588

  $

22,996

Adjustments to reconcile net income to net cash provided by operating activities:

    Depreciation and amortization expense

  59,837

  53,088

Amortization of debt issuance costs

  524

  524

Amortization of cloud computing assets

  1,043

  1,166

Non-cash operating lease cost

  50,624

  42,250

Equity-based compensation

  9,082

  9,750

Deferred income taxes

  3,002

  3,785

Non-cash interest

  27

  46

Impairments, loss on disposal of assets, and Shack closures

  1,292

  2,938

Changes in operating assets and liabilities:

    Accounts receivable

  (1,695

)

  (1,514

)

Inventories

  (177

)

  (14

)

Prepaid expenses and other current assets

  (12,529

)

  (2,162

)

Other assets

  (5,125

)

  (3,978

)

Accounts payable

  1,573

  (2,164

)

Accrued expenses

  (14,019

)

  12,947

Accrued wages and related liabilities

  (2,306

)

  (2,128

)

Other current liabilities

  575

  (343

)

Operating lease liabilities

  (43,987

)

  (44,356

)

Other long-term liabilities

  1,133

  3,389

NET CASH PROVIDED BY OPERATING ACTIVITIES

  65,462

  96,220

INVESTING ACTIVITIES

    Purchases of property and equipment

  (104,901

)

  (67,438

)

NET CASH USED IN INVESTING ACTIVITIES

  (104,901

)

  (67,438

)

FINANCING ACTIVITIES

    Payments on principal of finance leases

  (3,254

)

  (2,631

)

Distributions paid to non-controlling interest holders

  (2,817

)

  (857

)

Payments under tax receivable agreement, including interest

  (977

)

  (24

)

Net proceeds from stock option exercises

  69

  123

Employee withholding taxes related to net settled equity awards

  (5,738

)

  (9,300

)

NET CASH USED IN FINANCING ACTIVITIES

  (12,717

)

  (12,689

)

Effect of exchange rate changes on cash and cash equivalents

  (5

)

  (3

)

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

  (52,161

)

  16,090

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

  360,123

  320,714

CASH AND CASH EQUIVALENTS AT END OF PERIOD

  $

307,962

  $

336,804

SHAKE SHACK INC.
NON-GAAP FINANCIAL MEASURES
(UNAUDITED)

To supplement the condensed consolidated financial statements, which are prepared and presented in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company uses the following non-GAAP financial measures: Restaurant-level profit, Restaurant-level profit margin, EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted pro forma net income and adjusted pro forma earnings per fully exchanged and diluted share (collectively the "non-GAAP financial measures").

Restaurant-Level Profit

Restaurant-level profit is defined as Shack sales less Shack-level operating expenses including Food and paper costs, Labor and related expenses, Other operating expenses and Occupancy and related expenses.

How This Measure Is Useful

When used in conjunction with GAAP financial measures, Restaurant-level profit and Restaurant-level profit margin are supplemental measures of operating performance that the Company believes are useful measures to evaluate the performance and profitability of its Shacks. Additionally, Restaurant-level profit and Restaurant-level profit margin are key metrics used internally by management to develop internal budgets and forecasts, as well as assess the performance of its Shacks relative to budget and against prior periods. It is also used to evaluate employee compensation as it serves as a metric in certain performance-based employee bonus arrangements. The Company believes presentation of Restaurant-level profit and Restaurant-level profit margin provides investors with a supplemental view of its operating performance that can provide meaningful insights to the underlying operating performance of the Shacks, as these measures depict the operating results that are directly impacted by the Shacks and exclude items that may not be indicative of, or are unrelated to, the ongoing operations of the Shacks. It may also assist investors to evaluate the Company's performance relative to peers of various sizes and maturities and provides greater transparency with respect to how management evaluates the business, as well as the financial and operational decision-making.

Limitations of the Usefulness of this Measure

Restaurant-level profit and Restaurant-level profit margin may differ from similarly titled measures used by other companies due to different methods of calculation. Presentation of Restaurant-level profit and Restaurant-level profit margin is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Restaurant-level profit excludes certain costs, such as General and administrative expenses and Pre-opening costs, which are considered normal, recurring cash operating expenses and are essential to support the operation and development of the Company's Shacks. Therefore, this measure may not provide a complete understanding of the Company's operating results as a whole and Restaurant-level profit and Restaurant-level profit margin should be reviewed in conjunction with the Company's GAAP financial results.

A reconciliation of Restaurant-level profit to Income from operations, the most directly comparable GAAP financial measure, is set forth below.

  Thirteen Weeks Ended

  Twenty-Six Weeks Ended

(dollar amounts in thousands)

  July 1
2026

  June 25
2025

  July 1
2026

  June 25
2025

Income from operations

  $

20,746

  $

22,374

  $

18,112

  $

25,216

Less:

        Licensing revenue

  14,181

  13,242

  26,871

  24,302

Add:

        General and administrative expenses

  48,321

  40,671

  101,929

  81,311

Depreciation and amortization expense

  30,717

  26,545

  59,837

  53,088

Pre-opening costs

  6,638

  4,955

  13,508

  8,173

Impairments, loss on disposal of assets, and Shack closures

  425

  881

  1,292

  2,938

Restaurant-level profit

  $

92,666

  $

82,184

  $

167,807

  $

146,424

        Total revenue

  $

417,618

  $

356,466

  $

784,355

  $

677,364

Less: Licensing revenue

  14,181

  13,242

  26,871

  24,302

Shack sales

  $

403,437

  $

343,224

  $

757,484

  $

653,062

        Restaurant-level profit margin(1)

  23.0

%

  23.9

%

  22.2

%

  22.4

%

SHAKE SHACK INC.
NON-GAAP FINANCIAL MEASURES
(UNAUDITED)

EBITDA and Adjusted EBITDA

EBITDA, a non-GAAP measure, is defined as Net income before interest expense (net of interest income), Income tax expense and Depreciation and amortization expense. Adjusted EBITDA, a non-GAAP measure, is defined as EBITDA excluding equity-based compensation expense, Impairments, loss on the disposal of assets, and Shack closures, amortization of cloud-based software implementation costs, as well as certain non-recurring items that the Company does not believe directly reflect its core operations and may not be indicative of the Company's recurring business operations.

How These Measures Are Useful

When used in conjunction with GAAP financial measures, EBITDA and adjusted EBITDA are supplemental measures of operating performance that the Company believes are useful measures to facilitate comparisons to historical performance and competitors' operating results. Adjusted EBITDA is a key metric used internally by management to develop internal budgets and forecasts and also serves as a metric in its performance-based equity incentive programs and certain bonus arrangements. The Company believes presentation of EBITDA and adjusted EBITDA provides investors with a supplemental view of the Company's operating performance that facilitates analysis and comparisons of its ongoing business operations because they exclude items that may not be indicative of the Company's ongoing operating performance.

Limitations of the Usefulness of These Measures

EBITDA and adjusted EBITDA may differ from similarly titled measures used by other companies due to different methods of calculation. Presentation of EBITDA and adjusted EBITDA is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. EBITDA and adjusted EBITDA exclude certain normal recurring expenses. Therefore, these measures may not provide a complete understanding of the Company's performance and should be reviewed in conjunction with the GAAP financial measures.

A reconciliation of EBITDA and adjusted EBITDA to Net income, the most directly comparable GAAP measure, is set forth below.

  Thirteen Weeks Ended

  Twenty-Six Weeks Ended

(dollar amounts in thousands)

  July 1
2026

  June 25
2025

  July 1
2026

  June 25
2025

Net income

  $

16,882

  $

18,483

  $

16,588

  $

22,996

Depreciation and amortization expense

  30,717

  26,545

  59,837

  53,088

Interest expense, net

  468

  500

  984

  1,023

Income tax expense

  5,913

  6,193

  5,768

  6,930

EBITDA

  $

53,980

  $

51,721

  $

83,177

  $

84,037

        Equity-based compensation

  3,922

  5,209

  9,082

  9,750

Amortization of cloud-based software implementation costs

  531

  560

  1,043

  1,166

Impairments, loss on disposal of assets, and Shack closures

  425

  881

  1,292

  2,938

Executive transition costs(1)

  1,121

  414

  2,251

  414

Legal settlements(2)

  848

  —

  848

  983

Restatement costs(3)

  —

  100

  —

  354

Other(4)

  374

  15

  473

  3

Adjusted EBITDA

  $

61,201

  $

58,900

  $

98,166

  $

99,645

        Adjusted EBITDA margin(5)

  14.7

%

  16.5

%

  12.5

%

  14.7

%

(1)

  Expenses incurred in connection with the termination, search, and hiring of certain executive positions.

(2)

  Expenses incurred to establish accruals related to the settlements of legal matters.

(3)

  Expenses incurred related to the restatement of prior periods in the 2023 Form 10-K.

(4)

  Amounts related to the conflict in the Middle East and expenses incurred for professional fees related to non-recurring matters.

(5)

  Calculated as a percentage of Total revenue, which was $417.6 million and $784.4 million for the thirteen and twenty-six weeks ended July 1, 2026, respectively, and $356.5 million and $677.4 million for the thirteen and twenty-six weeks ended June 25, 2025, respectively.

SHAKE SHACK INC.
NON-GAAP FINANCIAL MEASURES
(UNAUDITED)

Adjusted Pro Forma Net Income and Adjusted Pro Forma Earnings Per Fully Exchanged and Diluted Share

Adjusted pro forma net income represents Net income attributable to Shake Shack Inc. assuming the full exchange of all outstanding SSE Holdings, LLC membership interests ("LLC Interests") for shares of Class A common stock, adjusted for certain non-recurring items that the Company does not believe are directly related to its core operations and may not be indicative of recurring business operations. Adjusted pro forma earnings per fully exchanged and diluted share is calculated by dividing adjusted pro forma net income by the weighted-average shares of Class A common stock outstanding, assuming the full exchange of all outstanding LLC Interests, after giving effect to the dilutive effect of outstanding equity-based awards.

How These Measures Are Useful

When used in conjunction with GAAP financial measures, adjusted pro forma net income and adjusted pro forma earnings per fully exchanged and diluted share are supplemental measures of operating performance that the Company believes are useful measures to evaluate performance period over period and relative to its competitors. By assuming the full exchange of all outstanding LLC Interests, the Company believes these measures facilitate comparisons with other companies that have different organizational and tax structures, as well as comparisons period over period because it eliminates the effect of any changes in Net income attributable to Shake Shack Inc. driven by increases in its ownership of SSE Holdings, which are unrelated to the Company's operating performance, and excludes items that are non-recurring or may not be indicative of ongoing operating performance.

Limitations of the Usefulness of These Measures

Adjusted pro forma net income and adjusted pro forma earnings per fully exchanged and diluted share may differ from similarly titled measures used by other companies due to different methods of calculation. Presentation of adjusted pro forma net income and adjusted pro forma earnings per fully exchanged and diluted share should not be considered alternatives to Net income and earnings per share, as determined under GAAP. While these measures are useful in evaluating the Company's performance, it does not account for the earnings attributable to the non-controlling interest holders and therefore does not provide a complete understanding of the Net income attributable to Shake Shack Inc. Adjusted pro forma net income and adjusted pro forma earnings per fully exchanged and diluted share should be evaluated in conjunction with GAAP financial results.

A reconciliation of adjusted pro forma net income to Net income attributable to Shake Shack Inc., the most directly comparable GAAP measure, and the computation of adjusted pro forma earnings per fully exchanged and diluted share are set forth below.

  Thirteen Weeks Ended

  Twenty-Six Weeks Ended

(in thousands, except per share amounts)

  July 1
2026

  June 25
2025

  July 1
2026

  June 25
2025

Numerator:

        Net income attributable to Shake Shack Inc.

  $

15,680

  $

17,148

  $

15,390

  $

21,393

Adjustments:

        Reallocation of Net income attributable to non-controlling interests from the assumed exchange of LLC Interests(1)

  1,202

  1,335

  1,198

  1,603

Impairment charge and Shack closures(2)

  6

  295

  35

  1,948

Executive transition costs(3)

  1,121

  414

  2,251

  414

Legal settlements(4)

  848

  —

  848

  983

Restatement costs(5)

  —

  100

  —

  354

Other(6)

  374

  15

  473

  3

Tax impact of above adjustments(7)

  (326

)

  169

  (1,202

)

  (824

)

Adjusted pro forma net income

  $

18,905

  $

19,476

  $

18,993

  $

25,874

        Denominator:

        Weighted average shares of Class A common stock outstanding—diluted

  41,866

  41,819

  41,873

  41,842

Adjustments:

        Assumed exchange of weighted average LLC Interests for shares of Class A common stock(1)

  2,429

  2,445

  2,431

  2,446

Adjusted pro forma fully exchanged weighted average shares of Class A common stock outstanding—diluted

  44,295

  44,264

  44,304

  44,288

        Adjusted pro forma earnings per fully exchanged share—diluted

  $

0.43

  $

0.44

  $

0.43

  $

0.58

  Thirteen Weeks Ended

  Twenty-Six Weeks Ended

  July 1
2026

  June 25
2025

  July 1
2026

  June 25
2025

Earnings per share of Class A common stock—diluted

  $

0.37

  $

0.41

  $

0.37

  $

0.51

Assumed exchange of weighted average LLC Interests for shares of Class A common stock(1)

  0.01

  0.01

  —

  0.01

Non-GAAP adjustments(8)

  0.05

  0.02

  0.06

  0.06

Adjusted pro forma earnings per fully exchanged share—diluted

  $

0.43

  $

0.44

  $

0.43

  $

0.58

(1)

  Assumes the exchange of all outstanding LLC Interests for shares of Class A common stock, resulting in the elimination of the non-controlling interest and recognition of the net income attributable to non-controlling interests.

(2)

  Expenses incurred related to Shack closures and impairment charges during fiscal 2024 and fiscal 2025.

(3)

  Expenses incurred in connection with the termination, search, and hiring of certain executive positions.

(4)

  Expenses incurred to establish accruals related to the settlements of legal matters.

(5)

  Expenses incurred related to the restatement of prior periods in the 2023 Form 10-K.

(6)

  Amounts related to the conflict in the Middle East and expenses incurred for professional fees related to non-recurring matters.

(7)

  Represents the tax effect of the aforementioned adjustments and pro forma adjustments to reflect corporate income taxes at assumed effective tax rates of 24.8% and 26.8% for the thirteen and twenty-six weeks ended July 1, 2026, respectively, and 23.6% and 23.1% for the thirteen and twenty-six weeks ended June 25, 2025, respectively. Amounts include provisions for U.S. federal income taxes, certain LLC entity-level taxes and foreign withholding taxes, assuming the highest statutory rates apportioned to each applicable state, local and foreign jurisdiction.

(8)

  Represents the per share impact of non-GAAP adjustments for each period. Refer to the reconciliation of Adjusted pro forma net income above, for additional information.

More News From Shake Shack Inc.

Shake Shack (SHAK -1.38%) reports second-quarter earnings on Wednesday, Aug. 5, but if you're long on Shake Shack, you should focus less on whether the company beats estimates and more on whether its growth story remains intact. So far, it does.

In Q1, revenue climbed 14.3% year over year to $366.7 million, while same-store sales increased 4.6%. The company also opened 17 company-operated restaurants and five licensed locations, continuing one of the fastest expansion plans in the fast-casual industry. I've personally seen quite a few at the travel plazas along the New York Thruway. They're becoming about as common as Chick-fil-A and Starbucks.

Expansion hasn't been an issue. But the challenge of profitability is very real. That shouldn't be taken lightly.

Image source: Getty Images.

Monitor margin pressure as expansions continue Higher beef costs, pre-opening expenses, and investments in technology and marketing helped push Shake Shack to a small net loss of $0.3 million in Q1, compared with net income of $4.5 million a year earlier. Those same pressures prompted management to lower its Q2 and full-year profit guidance. The company now expects Q2 revenue of $415 million to $420 million from a previous range of $424 million to $428 million. It also reduced its full-year adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) guidance to $225 million to $235 million, down from $230 million to $245 million.

Today's Change

(

-1.38

%) $

-0.87

Current Price

$

62.18

Shake Shack still has a relatively small footprint compared to larger fast-food chains, though, leaving plenty of room for continued expansion. Management believes Shake Shack can ultimately grow to 1,500 company-operated restaurants in the United States, or more than 4 times its current footprint.

That means Aug. 5 isn't really about one quarter's earnings. It's about whether management can show that restaurant traffic is holding up, margins are recovering, and new locations continue generating attractive returns.

If those pieces remain in place, short-term earnings volatility probably won't matter much five years from now. But if traffic weakens further or margin pressure intensifies, you may have to wait longer for the growth story to play out.

Jeff Siegel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Starbucks. The Motley Fool has a disclosure policy.

Posted by Defense World Staff on Jul 27th, 2026

Delta Global Management LP purchased a new stake in shares of Shake Shack, Inc. (NYSE:SHAK – Free Report) during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund purchased 21,024 shares of the company’s stock, valued at approximately $1,860,000.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Intech Investment Management LLC grew its position in Shake Shack by 40.1% in the 4th quarter. Intech Investment Management LLC now owns 77,916 shares of the company’s stock valued at $6,324,000 after buying an additional 22,287 shares in the last quarter. Jefferies Financial Group Inc. acquired a new stake in shares of Shake Shack in the 4th quarter worth approximately $2,898,000. Madison Asset Management LLC boosted its holdings in shares of Shake Shack by 37.3% in the fourth quarter. Madison Asset Management LLC now owns 58,404 shares of the company’s stock valued at $4,741,000 after acquiring an additional 15,852 shares in the last quarter. Swedbank AB acquired a new position in shares of Shake Shack during the fourth quarter valued at approximately $84,092,000. Finally, D.A. Davidson & CO. raised its holdings in Shake Shack by 115.5% during the fourth quarter. D.A. Davidson & CO. now owns 24,276 shares of the company’s stock worth $1,970,000 after purchasing an additional 13,013 shares in the last quarter. 86.07% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth Several brokerages have recently issued reports on SHAK. UBS Group reiterated a “neutral” rating and set a $79.00 price target on shares of Shake Shack in a research report on Wednesday, June 3rd. Jefferies Financial Group reaffirmed a “hold” rating and issued a $66.00 price target on shares of Shake Shack in a report on Tuesday, June 2nd. Piper Sandler reduced their price objective on shares of Shake Shack from $79.00 to $66.00 and set a “neutral” rating for the company in a research note on Tuesday, July 14th. Oppenheimer set a $82.00 target price on shares of Shake Shack and gave the stock an “outperform” rating in a report on Tuesday, June 2nd. Finally, The Goldman Sachs Group reissued a “buy” rating on shares of Shake Shack in a research report on Friday, May 8th. Fifteen equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, Shake Shack has an average rating of “Hold” and an average target price of $89.39.

Read Our Latest Research Report on SHAK

Shake Shack Stock Performance Shares of Shake Shack stock opened at $57.09 on Monday. Shake Shack, Inc. has a 12 month low of $51.60 and a 12 month high of $142.20. The company has a quick ratio of 1.66, a current ratio of 1.69 and a debt-to-equity ratio of 0.45. The stock has a market cap of $2.44 billion, a PE ratio of 58.25, a price-to-earnings-growth ratio of 4.41 and a beta of 1.63. The business has a fifty day simple moving average of $57.99 and a 200-day simple moving average of $79.94.

Insider Transactions at Shake Shack In other Shake Shack news, Director Sumaiya Balbale acquired 4,068 shares of the firm’s stock in a transaction on Friday, May 15th. The stock was purchased at an average cost of $61.42 per share, for a total transaction of $249,856.56. Following the transaction, the director owned 13,407 shares of the company’s stock, valued at $823,457.94. The trade was a 43.56% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Josh Silverman bought 8,290 shares of the stock in a transaction on Friday, May 15th. The shares were acquired at an average cost of $60.38 per share, for a total transaction of $500,550.20. Following the purchase, the director owned 8,290 shares in the company, valued at approximately $500,550.20. This represents a ∞ increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last 90 days, insiders bought 50,616 shares of company stock worth $3,109,782. 8.32% of the stock is currently owned by company insiders.

Shake Shack Profile (Free Report)

Shake Shack, Inc (NYSE: SHAK) is a publicly traded hospitality company known for its modern take on the classic American roadside burger stand. The company operates a chain of quick-casual restaurants offering premium hamburgers, hot dogs, crinkle-cut fries, frozen custard, milkshakes and a curated selection of beer and wine. Shake Shack emphasizes high-quality ingredients, including 100% all-natural Angus beef with no hormones or antibiotics, and works with local suppliers where possible to maintain its commitment to fresh, responsibly sourced food.

Shake Shack traces its origins to a hot dog cart opened in New York City’s Madison Square Park in 2001 by Danny Meyer’s Union Square Hospitality Group.

Featured Articles Five stocks we like better than Shake Shack RTX and Lockheed Earnings: Can Strong Guidance Reset the Defense Trade? These 4 Earnings Reports Expose the Market’s Growing Economic Divide Broadcom May Be the Biggest Winner From Alphabet’s Earnings Volatility Is Back and These 3 Market Tollbooths Are Best Positioned to Profit

Receive News & Ratings for Shake Shack Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Shake Shack and related companies with MarketBeat.com's FREE daily email newsletter.

« PREVIOUS HEADLINEDelta Global Management LP Acquires 8,142 Shares of Take-Two Interactive Software, Inc. $TTWO

NEXT HEADLINE »49,686 Shares in General Mills, Inc. $GIS Bought by Delta Global Management LP

Posted by Defense World Staff on Jul 23rd, 2026

Shake Shack, Inc. (NYSE:SHAK – Get Free Report) has been given a consensus rating of “Hold” by the twenty-seven research firms that are presently covering the firm, MarketBeat.com reports. Two research analysts have rated the stock with a sell rating, ten have given a hold rating and fifteen have issued a buy rating on the company. The average twelve-month price target among brokerages that have updated their coverage on the stock in the last year is $89.3913.

Several research firms have recently commented on SHAK. Zacks Research lowered shares of Shake Shack from a “hold” rating to a “strong sell” rating in a research report on Tuesday, July 7th. Mizuho set a $100.00 price objective on Shake Shack in a research report on Friday, May 8th. BNP Paribas Exane lowered their target price on Shake Shack from $100.00 to $77.00 and set an “outperform” rating on the stock in a research report on Thursday, June 4th. BTIG Research reissued a “neutral” rating on shares of Shake Shack in a research note on Wednesday, May 20th. Finally, The Goldman Sachs Group reissued a “buy” rating on shares of Shake Shack in a report on Friday, May 8th.

View Our Latest Stock Report on Shake Shack

Insider Transactions at Shake Shack In other news, Director Josh Silverman bought 8,290 shares of the business’s stock in a transaction on Friday, May 15th. The stock was purchased at an average cost of $60.38 per share, for a total transaction of $500,550.20. Following the completion of the transaction, the director directly owned 8,290 shares of the company’s stock, valued at approximately $500,550.20. This trade represents a ∞ increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Robert Lynch bought 5,000 shares of the business’s stock in a transaction on Friday, May 15th. The stock was purchased at an average price of $60.39 per share, with a total value of $301,950.00. Following the completion of the transaction, the chief executive officer directly owned 77,845 shares of the company’s stock, valued at $4,701,059.55. This trade represents a 6.86% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders have purchased a total of 50,616 shares of company stock worth $3,109,782 over the last ninety days. Insiders own 8.32% of the company’s stock.

Institutional Trading of Shake Shack Hedge funds and other institutional investors have recently modified their holdings of the company. Swedbank AB acquired a new stake in shares of Shake Shack in the fourth quarter valued at $84,092,000. Adage Capital Partners GP L.L.C. acquired a new position in Shake Shack during the fourth quarter worth about $40,829,000. Wellington Management Group LLP grew its holdings in Shake Shack by 21.0% during the third quarter. Wellington Management Group LLP now owns 2,590,911 shares of the company’s stock worth $242,535,000 after acquiring an additional 450,406 shares during the period. Marshall Wace LLP raised its position in Shake Shack by 285.2% in the third quarter. Marshall Wace LLP now owns 586,999 shares of the company’s stock worth $54,949,000 after acquiring an additional 434,625 shares in the last quarter. Finally, Renaissance Technologies LLC bought a new stake in Shake Shack in the fourth quarter worth about $20,455,000. Institutional investors own 86.07% of the company’s stock.

Shake Shack Trading Down 0.9% NYSE:SHAK opened at $55.92 on Thursday. The firm has a market capitalization of $2.39 billion, a P/E ratio of 57.06, a P/E/G ratio of 4.36 and a beta of 1.63. The business has a 50 day simple moving average of $58.17 and a 200 day simple moving average of $80.32. The company has a debt-to-equity ratio of 0.45, a current ratio of 1.69 and a quick ratio of 1.66. Shake Shack has a 12-month low of $51.60 and a 12-month high of $142.20.

Shake Shack Company Profile (Get Free Report)

Shake Shack, Inc (NYSE: SHAK) is a publicly traded hospitality company known for its modern take on the classic American roadside burger stand. The company operates a chain of quick-casual restaurants offering premium hamburgers, hot dogs, crinkle-cut fries, frozen custard, milkshakes and a curated selection of beer and wine. Shake Shack emphasizes high-quality ingredients, including 100% all-natural Angus beef with no hormones or antibiotics, and works with local suppliers where possible to maintain its commitment to fresh, responsibly sourced food.

Shake Shack traces its origins to a hot dog cart opened in New York City’s Madison Square Park in 2001 by Danny Meyer’s Union Square Hospitality Group.

See Also Five stocks we like better than Shake Shack Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Small Caps Are Crushing the S&P 500—3 Stocks Still Worth Buying Moog Is More Than a Missile Maker, and Wall Street Is Noticing A Boring Dividend Growth Strategy Becomes a Solid Defensive Play

Receive News & Ratings for Shake Shack Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Shake Shack and related companies with MarketBeat.com's FREE daily email newsletter.

« PREVIOUS HEADLINEDomino’s Pizza Inc (NASDAQ:DPZ) Receives Consensus Rating of “Moderate Buy” from Analysts

NEXT HEADLINE »Tenet Healthcare Corporation (NYSE:THC) Given Average Recommendation of “Moderate Buy” by Analysts

1.05K Followers

Analyst’s Disclosure: I/we have a beneficial long position in the shares of FWRG, SHAK either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Investors interested in Retail - Restaurants stocks are likely familiar with BJ's Restaurants (BJRI) and Shake Shack (SHAK). But which of these two companies is the best option for those looking for undervalued stocks?

Shake Shack remains a buy amid a ~60% stock decline YoY, while its long-term growth and re-rating potential are intact. Recent guidance cuts reflect macroeconomic headwinds, with Q2 revenue and margin expectations lowered and near-term volatility being likely. SHAK's asset-light model, strong balance sheet, and digital initiatives support ongoing expansion and improved guest engagement.

Shake Shack’s iconic Shack Truck will make its Calgary Stampede debut this July June 12, 2026 11:10 ET  | Source: Shake Shack Canada

Calgary, Alberta, June 12, 2026 (GLOBE NEWSWIRE) -- Fresh off the heels of opening its first Western Canadian location in CF Chinook Centre last month, Shake Shack announces its first-ever Calgary Stampede appearance. Not only will Shake Shack be a new food vendor at this year’s Stampede, but this will also mark the Calgary debut of Shake Shack’s iconic Shack Truck food truck.

The Shack Truck launched last summer in Ontario, making a summer tour throughout Ontario. This summer, the Shack Truck will make its way to Alberta for the first time, setting up shop at the Calgary Stampede from July 3 to 12, 2026. The Shack Truck will be located in the centre of all the action, just south of Flores Ladue Parade SE next to the Mega Drop ride. 

In addition to Shake Shack’s iconic ShackBurger, Crinkle Cut Fries and Hand-spun Shakes (Vanilla, Cookies & Cream, Strawberry), the Shack Truck will be serving up a special burger, the Cowtown Burger, crafted specifically for Stampede Week. The Cowtown Burger features 100% Alberta Angus beef topped with crispy cheese curds, pickles and a smoky BBQ sauce. All items served from the Shack Truck will be sold at in-restaurant pricing, with prices ranging from $3.50 to $15.00.

“Calgary has been such a welcoming city since we’ve opened, so we wanted to dive right in and be a part of the iconic Calgary Stampede,” said Billy Richmond, Business Director, Shake Shack Canada. “We’re proud to be part of such a major Calgary tradition, and we’re excited for everyone to try the new Cowtown Burger!”

A media kit with high resolution images can be found here.

STAY CONNECTED 
Website: shakeshack.ca 
Instagram: @shakeshackca
TikTok: @shakeshackca

ABOUT SHAKE SHACK CANADA
Formed in 2023, Shake Shack Canada is a partnership between Osmington Inc. and Harlo Entertainment Inc.—two Canadian-based private investment companies committed to innovation, value creation, and delivering exceptional experiences. Shake Shack Canada brings the brand’s iconic menu and hospitality to Canadians, with seven locations across Ontario and plans to open at least 35 locations nationwide.

ABOUT SHAKE SHACK
Shake Shack serves elevated versions of American classics using only the best ingredients. It's known for its delicious made-to-order Angus beef burgers, crispy chicken, hand-spun milkshakes, house-made lemonades, beer, wine, and more. With its high-quality food at a great value, warm hospitality, and a commitment to crafting uplifting experiences, Shake Shack quickly became a cult-brand with widespread appeal. Shake Shack's purpose is to Stand For Something Good®, from its premium ingredients and employee development, to its inspiring designs and deep community investment. Since the original Shack opened in 2004 in NYC's Madison Square Park, the Company has expanded to over 670 locations system-wide, including over 430 in 45 U.S. States and the District of Columbia, and over 240 international locations across London, Hong Kong, Shanghai, Singapore, Mexico City, Istanbul, Dubai, Tokyo, Seoul and more.

Contact Data Ayla Gilmer Shake Shack Canada 4038092159 [email protected]

NEW YORK, June 02, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Shake Shack, Inc. (“Shake Shack” or the “Company”) (NYSE: SHAK).  Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.

The investigation concerns whether Shake Shack and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. 

[Click here for information about joining the class action]

On May 7, 2026, Shake Shack reported its financial results for the first quarter of 2026.  Among other items, Shake Shack disclosed an operating loss of $2.6 million, compared to operating income of $2.8 million in the prior-year period, and a net loss of $0.3 million, compared to net income of $4.5 million in the prior-year period.  The Company further disclosed adjusted EBITDA of $37.0 million, down 9.3% versus the prior-year period.  In addition, Shake Shack disclosed that restaurant-level margins came in “slightly below” expectations due to higher other operating expenses.  The Company reported that other operating expenses were 16.2% of Shack sales, up 60 basis points year-over-year, and that food and paper costs were 28.3% of Shack sales, up 50 basis points year-over-year, with beef costs up by low-teens percentages.  Shake Shack also disclosed that general and administrative expenses were $53.6 million, or 14.6% of total revenue, 190 basis points higher than last year, and that pre-opening costs were $6.9 million.  Shake Shack further provided fiscal year 2026 adjusted EBITDA guidance in the range of $230 million to $245 million and stated that its outlook factors in “a degree of pressure on the consumer spending landscape and ongoing inflationary headwinds.” 

On this news, Shake Shack’s stock price fell $27.28 per share, or 28.26%, to close at $69.24 per share on May 7, 2026.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.

Attorney advertising. Prior results do not guarantee similar outcomes. 

CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980

Shake Shack stock drops 9-10% after the company slashes FY 2026 revenue, margin, and EBITDA guidance

, /PRNewswire/ -- Shake Shack Inc. (NYSE: SHAK) shares were trading down more than 10% today after the company cut its full-year 2026 outlook across every major non-licensing financial metric, citing macroeconomic uncertainty, competitive pressure, rising beef costs, and weather-related sales weakness. Shareholders who lost money on their Shake Shack investment are encouraged to submit their information here. You may also contact Joseph E. Levi, Esq. via email at [email protected] or by telephone at (212) 363-7500.

Shake Shack reduced second quarter revenue guidance from $424-$428M to $415-$420M, lowered same-shack sales growth from 3-5% to 2.5-3%, cut restaurant-level profit margin guidance from 24-24.5% to 22-23%, and trimmed company-operated openings from 16-19 down to "approximately 16." The Company further cut its full year profit margins from 23-23.5% down to 22-23% and adjusted EBITDA guidance from $230-$245M to $225-$235M, with net income similarly dropping its midpoint from $55M to $50M. The cuts came just 26 days after CEO Rob Lynch reiterated guidance on the Q1 2026 earnings call on May 7, 2026, stating the company was "reiterating our 2026 guidance for Shake-Shack sales, restaurant-level margins and our long-term financial targets."

SHAK shares had previously declined considerably following its May earnings. From a pre-drop price of $96.52 on May 6, 2026, SHAK shares have now fallen more than 40% to the high-$50s. Levi & Korsinsky, LLP is investigating whether Shake Shack may have failed to adequately disclose known risks to investors prior to today's guidance reduction.

Shareholders who purchased SHAK and suffered a loss are encouraged to click here to discuss their legal rights. You may also contact Joseph E. Levi, Esq. via email at [email protected] or by telephone at (212) 363-7500.

ABOUT LEVI & KORSINSKY, LLP -- Over the past 20 years, Levi & Korsinsky has secured hundreds of millions of dollars for aggrieved shareholders. The firm has extensive expertise in complex securities litigation and a team of over 70 employees. For seven consecutive years, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report.

Frequently Asked Questions About the SHAK Investigation

Q: What is the SHAK securities investigation about? A: A securities investigation has been initiated concerning Shake Shack Inc. (NYSE: SHAK) regarding potentially materially false and misleading statements. Shares fell approximately 9-10% after the company cut its full-year 2026 guidance across multiple metrics, causing significant losses for shareholders.

Q: Who is eligible to participate in the SHAK investigation? A: Investors who purchased SHAK stock or securities and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses -- not on whether you still hold the shares.

Q: What do SHAK investors need to do right now? A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact Levi & Korsinsky for a free, no-obligation evaluation at [email protected] or (212) 363-7500. No immediate action is required to remain eligible to participate in the investigation.

Q: What is a lead plaintiff and why does it matter? A: If the investigation proceeds to legal action, a lead plaintiff is the investor the court appoints to represent the group of affected investors. Lead plaintiffs are typically investors with the largest documented losses. Contacting the firm during the investigation phase preserves that option.

Q: What if I already sold my SHAK shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought SHAK and sold at a loss may still participate in the investigation.

Q: What does it cost me to participate? A: Nothing. Securities investigations and any resulting actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.

Q: Why should investors choose Levi & Korsinsky? A: Ranked among top securities litigation firms by ISS for seven consecutive years. Recovered hundreds of millions for shareholders with extensive federal court experience.

CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
[email protected]
Tel: (212) 363-7500
Fax: (212) 363-7171

View original content to download multimedia:https://www.prnewswire.com/news-releases/shake-shack-investigation-initiated-levi--korsinsky-investigates-the-officers-and-directors-of-shake-shack-shak-302789296.html

SOURCE Levi & Korsinsky, LLP

Fast food chain Shake Shack Inc (NYSE:SHAK) is down 4% to trade at $54.73 this morning, after a downgrade to "overweight" from "equal weight" at Morgan Stanley. The firm also cut its price target to $76 from $115, just one day after Shake Shack slashed both its second quarter and full-year outlook.

Several other analysts also chimed in with price-target cuts, including Wells Fargo to $60 from $80. Ahead of today, analysts had been mostly optimistic toward the burger name, with 17 of the 21 in coverage sporting a "buy" or "strong buy" recommendation. 

SHAK earlier traded as low as $53.90, a new three-year low. The shares have backpedaled 32% in 2026, thanks in large part to a 28.3% post-earnings bear gap on May 7.

Options traders have been bullish toward SHAK as well. The equity's 50-day call/put volume ratio of 2.44 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks in the 94th annual percentile, meaning should this bullish sentiment begin to unwind, it could trigger more headwinds for the shares.

Options are looking affordable for Shake Shack stock, per its Schaeffer's Volatility Index (SVI) of 51% that ranks in the 27th annual percentile. Plus, SHAK's Schaeffer's Volatility Scorecard (SVS) comes in at 95 out of 100. This suggests the equity has consistently realized higher volatility than its options have priced in.

, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Shake Shack, Inc. ("Shake Shack" or the "Company") (NYSE: SHAK). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.

          The investigation concerns whether Shake Shack and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. 

[Click here for information about joining the class action]

          On May 7, 2026, Shake Shack reported its financial results for the first quarter of 2026. Among other items, Shake Shack disclosed an operating loss of $2.6 million, compared to operating income of $2.8 million in the prior-year period, and a net loss of $0.3 million, compared to net income of $4.5 million in the prior-year period. The Company further disclosed adjusted EBITDA of $37.0 million, down 9.3% versus the prior-year period. In addition, Shake Shack disclosed that restaurant-level margins came in "slightly below" expectations due to higher other operating expenses. The Company reported that other operating expenses were 16.2% of Shack sales, up 60 basis points year-over-year, and that food and paper costs were 28.3% of Shack sales, up 50 basis points year-over-year, with beef costs up by low-teens percentages. Shake Shack also disclosed that general and administrative expenses were $53.6 million, or 14.6% of total revenue, 190 basis points higher than last year, and that pre-opening costs were $6.9 million. Shake Shack further provided fiscal year 2026 adjusted EBITDA guidance in the range of $230 million to $245 million and stated that its outlook factors in "a degree of pressure on the consumer spending landscape and ongoing inflationary headwinds." 

          On this news, Shake Shack's stock price fell $27.28 per share, or 28.26%, to close at $69.24 per share on May 7, 2026.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.

Attorney advertising. Prior results do not guarantee similar outcomes. 

CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980

SOURCE Pomerantz LLP

NEW YORK--(BUSINESS WIRE)--Shake Shack (NYSE: SHAK) lost approximately 9-10% of its value today after the company cut FY 2026 restaurant-level profit margin guidance from 23-23.5% to 22-23% and trimmed quarterly guidance from 24-24.5% to only 22-23%. Shareholders who lost money on SHAK are encouraged to submit their information immediately. You may also contact Joseph E. Levi, Esq. via email at [email protected] or by telephone at (212) 363-7500.On May 7, 2026 -- just 26 days before today'.

Shake Shack’s Second Quarter guidance disappointed investors on May 7, 2026. By June 2, that guidance was revised further downward and investors were again disappointed. The stock lost more than 40% from its May 6 figures. June 05, 2026 09:00 ET  | Source: Levi & Korsinsky, LLP

NEW YORK, June 05, 2026 (GLOBE NEWSWIRE) -- Shake Shack (NYSE: SHAK) had previously declined considerably following its May earnings; from a pre-drop price of $96.52, the stock slid 27.28 (28.26%) on May 7, 2026. On June 2, 2026, shareholders saw another 9-10% of their investment wiped out after management slashed several major full-year 2026 financial targets and nearly ever second quarter target issued during its first quarter earnings just 26 days earlier. Shareholders who lost money on SHAK are encouraged to submit their information to Levi & Korsinsky. You may also contact Joseph E. Levi, Esq. via email at [email protected] or by telephone at (212) 363-7500.

On May 7, 2026, CEO Rob Lynch told investors: "We are reiterating our 2026 guidance for Shake-Shack sales, restaurant-level margins and our long-term financial targets." On that same call, management broadened adjusted EBITDA guidance to $230-$245 million and was “confident in [their] guidance for Q2 at 3% to 5% comp growth.” Twenty-six days later, on June 2, 2026, the Company cut Q2 revenue guidance from $424-$428 million to $415-$420 million, reduced same-shack sales growth to 2.5-3%, lowered restaurant-level profit margin guidance from 24-24.5% to 22-23%. The Company further trimmed full-year profit margins, adjusted EBITDA, and net income projections. Management attributed the cuts to “the current macroeconomic uncertainty, competitive landscape, and related impacts.”

The factors cited on June 2 did not emerge overnight. As early as the Q4 2025 call on February 26, 2026, Lynch described "a new level of confidence and capability" positioning the Company for "additional cost savings and further expansion in 2026 and beyond." On May 7, 2026, Lynch claimed management was “highly confident in our guide for Q2.”

If you purchased Shake Shack shares and suffered a loss, click here to discuss your rights with Levi & Korsinsky. You may also contact Joseph E. Levi, Esq. via email at [email protected] or by telephone at (212) 363-7500.

Levi & Korsinsky, LLP | Top 50 Securities Firm | (212) 363-7500 | www.zlk.com

Frequently Asked Questions About the SHAK Investigation

Q: Which statements are being investigated as potentially misleading? A: The investigation concerns whether Shake Shack made materially false or misleading statements regarding its Q2 and FY 2026 financial outlook -- including revenue, margins, same-shack sales growth, and EBITDA targets -- which were issued or reiterated as recently as May 7, 2026, and materially cut just 26 days later. When the second quarter guidance was revealed, the stock price declined sharply on May 7, 2026. When the guidance was revised downward on June 2, 2026, the stock price declined even further.

Q: Who is eligible to participate in the SHAK investigation? A: Investors who purchased SHAK stock or securities and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses -- not on whether you still hold the shares.

Q: What do SHAK investors need to do right now? A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact Levi & Korsinsky for a free, no-obligation evaluation at [email protected] or (212) 363-7500. No immediate action is required to remain eligible to participate in the investigation.

Q: What if I already sold my SHAK shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought SHAK and sold at a loss may still participate in the investigation.

Q: What does it cost me to participate? A: Nothing. Securities investigations and any resulting actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.

Q: What if I live outside the United States? A: U.S. securities fraud investigations generally cover purchases on U.S. exchanges regardless of the investor's country of residence.

CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
[email protected]
Tel: (212) 363-7500
Fax: (212) 363-7171

New York, New York--(Newsfile Corp. - June 8, 2026) - Levi & Korsinsky notifies investors that it has commenced an investigation into Shake Shack Inc. ("Shake Shack Inc.") (NYSE: SHAK) concerning potential violations of the federal securities laws.

Shake Shack shareholders lost approximately 9-10% of their investment today after the company cut Q2 FY 2026 revenue guidance to $415--$420 million, down from $424--$428 million issued just 26 days earlier. Same-shack sales growth guidance dropped from 3--5% to 2.5--3%, and restaurant-level profit margin expectations fell from 24--24.5% to 22--23%.

On May 7, 2026, CEO Rob Lynch told investors on Shake Shack's Q1 2026 earnings call: "We are reiterating our 2026 guidance for Shake-Shack sales, restaurant-level margins and our long-term financial targets." On the same call, management broadened adjusted EBITDA guidance to $230--$245 million. Today -- less than four weeks later -- several of those targets were reduced. Restaurant-level margins were cut by up to 150 basis points. Adjusted EBITDA guidance was lowered to $225--$235 million. While full-year same-Shak sales guidance remains intact, Q2's guidance was gutted with the floor becoming the celling as projections dropped from 3--5% to only 2.5-3%.

If you suffered a loss on your Shake Shack Inc. securities and would like to explore a potential recovery under the federal securities laws, Learn More About the Investigation or contact Joseph E. Levi, Esq. via email at [email protected] or call (212)363-7500 to speak to our team of experienced shareholder advocates.

WHY LEVI & KORSINSKY: Over the past 20 years, Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report as one of the top securities litigation firms in the United States. Attorney Advertising. Prior results do not guarantee similar outcomes.

CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
[email protected]
Tel: (212)363-7500
Fax: (212)363-7171

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/300484

Source: Levi & Korsinsky, LLP

Ready to Announce with Confidence? Send us a message and a member of our TMX Newsfile team will contact you to discuss your needs.

Contact Us

Shake Shack projected 3% to 5% same store sales growth in the second quarter on May 7, 2026. Twenty-six days later, those projections were gutted to 2.5% to 3%.

, /PRNewswire/ -- Shake Shack (NYSE: SHAK) investors lost approximately 9-10% of their holdings today after the company slashed its FY 2026 adjusted EBITDA guidance to $225-$235 million -- down from the $230-$245 million range it had presented to investors just 26 days earlier on May 7, 2026. Shareholders who suffered losses on their Shake Shack investment are encouraged to submit their information here. You may also contact Joseph E. Levi, Esq. via email at [email protected] or by telephone at (212) 363-7500.

On May 7, 2026, CEO Rob Lynch told investors on the Q1 2026 earnings call: "We are broadening our 2026 adjusted EBITDA guidance to a range of $230 million to $245 million." On the same call, management reiterated guidance for restaurant-level margins at 23-23.5%. On June 2, 2026, the company revised full-year restaurant-level profit margins to 22-23% and cut EBITDA guidance to $225 million to $235 million. The stock fell approximately 9-10% in a single session.

The May 7 earnings call also issued second quarter revenue guidance of $424-$428 million. Today's revision lowered that figure to $415-$420 million -- a reduction of up to $13 million. Same-shack sales growth guidance dropped from 3-5% to 2.5-3% for the quarter.

Shareholders who lost money on SHAK are encouraged to click here to discuss their legal rights. You may also contact Joseph E. Levi, Esq. via email at [email protected] or by telephone at (212) 363-7500.

Levi & Korsinsky, LLP -- Top 50 securities litigation firm (ISS, seven consecutive years). Over 70 professionals. Hundreds of millions recovered.

Frequently Asked Questions About the SHAK Investigation

Q: Who is eligible to participate in the SHAK investigation? A: Investors who purchased SHAK stock or securities and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses -- not on whether you still hold the shares.

Q: Which statements are being investigated as potentially misleading? A: The investigation concerns whether Shake Shack made materially false or misleading statements regarding its Q2 and FY 2026 financial outlook, including EBITDA, revenue, restaurant-level margins, and same-shack sales growth guidance. When revised figures were disclosed on June 2, 2026, the stock price declined sharply.

Q: How much did SHAK stock drop? A: Shares fell approximately 9-10% on June 2, 2026, after the company disclosed material downward revisions to multiple Q2 and FY 2026 guidance metrics. Investors who purchased shares at previously guided levels may be entitled to recovery.

Q: What do SHAK investors need to do right now? A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact Levi & Korsinsky for a free, no-obligation evaluation at [email protected] or (212) 363-7500. No immediate action is required to remain eligible to participate in the investigation.

Q: What if I already sold my SHAK shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought SHAK and sold at a loss may still participate in the investigation.

Q: What does it cost me to participate? A: Nothing. Securities investigations and any resulting actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.

Q: Why should investors choose Levi & Korsinsky? A: Ranked among top securities litigation firms by ISS for seven consecutive years. Recovered hundreds of millions for shareholders with extensive federal court experience.

CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
[email protected]
Tel: (212) 363-7500
Fax: (212) 363-7171

SOURCE Levi & Korsinsky, LLP

The restaurant industry is currently facing a tug of war between value-seeking diners and those craving premium experiences. Choosing between BJ's Restaurants (BJRI +7.04%) and Shake Shack (SHAK +7.07%) requires weighing scale against high-octane growth.

BJ's Restaurants operates as a traditional casual dining chain with large locations and extensive menus. Shake Shack thrives in the fast-casual space, focusing on premium burgers and a leaner footprint. While both companies have reached similar revenue levels, their paths to profitability and market valuations diverge significantly for investors.

The case for BJ's RestaurantsBJ's Restaurants operates a national chain of over 200 locations that blend a brewery experience with family-friendly dining. The company focuses on a massive menu featuring deep-dish pizza and its own proprietary craft beers. This strategy aims to capture high guest traffic by appealing to a wide variety of tastes and dining occasions.

The company operates within the competitive landscape of retail stocks, focusing on a high-volume dining model. In its 2025 fiscal year (FY), revenue reached $1.4 billion, which represented a growth rate of 3.1% compared to the prior year. Net income for the period was $48.8 million, showing a significant increase from the $16.7 million reported in 2024.

As of its December 2025 balance sheet, the debt-to-equity ratio was 1.3x. This ratio represents total debt divided by shareholder equity, showing how much a company relies on borrowing to fund its operations. The current ratio was 0.1x, which measures a company's ability to cover short-term liabilities with liquid assets. Free cash flow for the year reached $40.9 million, representing cash left over after paying for operations and equipment.

The case for Shake ShackShake Shack has evolved from a single hot dog cart into a global brand with over 600 locations worldwide. The business model utilizes a mix of company-operated Shacks and a high-margin licensing program. You should note that licensee concentration is high, as one partner operates 30% of all international licensed Shacks, which adds a layer of risk to the business.

Financial performance in FY 2025 showed strong momentum as revenue reached $1.4 billion. This marked a substantial revenue growth rate of 15.4% over the previous fiscal year. Net income for the year was $45.7 million, resulting in a net margin of 3.2%.

According to the December 2025 balance sheet, the company maintained a debt-to-equity ratio of 1.7x. The current ratio reached 1.8x, suggesting a healthy cushion of short-term assets relative to upcoming bills. Free cash flow for the fiscal year was $56.5 million, which is the cash generated after accounting for all capital expenditures.

Risk profile comparisonBJ's Restaurants faces intense competition from local operators and large national chains like Darden Restaurants. The company is also subject to complex regulation regarding its ability to manufacture and sell alcoholic beverages. Volatility in commodity prices for meats and grains remains a constant threat to its operating margin, as inflation can drive up raw material costs.

Shake Shack deals with significant supply chain risks, relying on a single distributor for nearly 95% of its domestic food distribution. Any disruption from this partner could lead to severe shortages at its locations. The company also competes against giants like McDonald's, making rising labor costs a headwind for the business.

Valuation comparisonBJ's Restaurants currently trades at a significant discount to Shake Shack when comparing both Forward P/E and P/S ratio metrics based on future earnings estimates.

MetricBJ's RestaurantsShake ShackSector BenchmarkForward P/E21.7x46.7x29.5xP/S ratio0.7x1.5xn/aSector benchmark uses the SPDR XLY sector ETF. Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

Having eaten at both BJ's Restaurants and Shake Shack, I prefer the food and prices at the latter. When it comes to which company to invest in, however, that’s a more complicated decision.

BJ's is not exhibiting the kind of outsized growth seen with Shake Shack. The restaurant chain delivered a 3% year-over-year sales increase in 2025, and that was also the case in the first quarter.

Contrast that with Shake Shack’s 15% growth rate in 2025, with a 14% year-over-year jump up in sales in its fiscal first quarter ended April 1. Shake Shack plans to open over 60 new locations in 2026, and so, the company forecasted a year-over-year sales increase of at least 22%.

However, opening restaurants is costly, and the price for beef has risen, putting pressure on Shake Shack’s margins. It exited fiscal Q1 with a net loss of $0.3 million versus net income of $4.5 million in 2025.

BJ's is a well-run operation with net income of $9 million in Q1 on sales of $358 million. Its stock hit a 52-week high exceeding $48 on June 10 while Shake Shack shares fell to a low of $51.60 on June 8 as it reduced its FY 2026 guidance due to macroeconomic headwinds.

Despite the price increase, BJ’s stock boasts the better valuation. Factoring this in along with solid financials makes BJ's Restaurants the better stock to buy in 2026.