Investors interested in Retail - Restaurants stocks are likely familiar with BJ's Restaurants (BJRI - Free Report) and Shake Shack (SHAK - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, BJ's Restaurants has a Zacks Rank of #2 (Buy), while Shake Shack has a Zacks Rank of #5 (Strong Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that BJRI has an improving earnings outlook. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
BJRI currently has a forward P/E ratio of 29.22, while SHAK has a forward P/E of 49.56. We also note that BJRI has a PEG ratio of 2.09. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SHAK currently has a PEG ratio of 4.33.
Another notable valuation metric for BJRI is its P/B ratio of 3.67. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, SHAK has a P/B of 4.32.
These metrics, and several others, help BJRI earn a Value grade of B, while SHAK has been given a Value grade of D.
BJRI has seen stronger estimate revision activity and sports more attractive valuation metrics than SHAK, so it seems like value investors will conclude that BJRI is the superior option right now.
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.
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Key Takeaways Shake Shack grew revenues 14.3%, supported by new restaurant openings and positive comparable sales.SHAK is investing in digital tools, menu innovation and faster restaurant expansion to drive growth.Higher costs, inflation and lower earnings estimates continue to pressure Shake Shack's near-term outlook. Shake Shack Inc.’s (SHAK - Free Report) shares have tumbled 40.2% over the past six months, significantly underperforming the restaurant industry's 5.4% decline. The sharp selloff followed disappointing first-quarter 2026 results in which the company missed both earnings and revenue expectations.
Investors were further discouraged by weaker-than-expected adjusted EBITDA, persistent inflationary pressures, higher costs tied to accelerated restaurant openings and a broader full-year EBITDA outlook. While management remains confident about the company's long-term growth strategy, near-term earnings headwinds have weighed heavily on investor sentiment.
In the past month, SHAK has also underperformed industry players like The Wendy's Company (WEN - Free Report) , The Cheesecake Factory Incorporated (CAKE - Free Report) and Arcos Dorados Holdings Inc. (ARCO - Free Report) .
Price Performance
Image Source: Zacks Investment Research
Margin Pressure Continues to Cloud Near-Term OutlookShake Shack delivered solid top-line growth, with first-quarter revenues rising 14.3% year over year, driven by new restaurant openings and positive comparable sales. However, stronger sales were not enough to offset higher operating costs. Adjusted EBITDA declined 9.3% from the prior-year quarter as severe weather, increased marketing investments and elevated pre-opening expenses weighed on profitability. Management subsequently widened its adjusted EBITDA guidance for 2026, reflecting greater uncertainty surrounding the operating environment.
Commodity inflation remains another major challenge. Beef prices continued to rise at a double-digit pace, pressuring food costs throughout the quarter. Although procurement initiatives and improved labor productivity helped offset some of the inflationary impact, restaurant-level margins still fell short of management's expectations due to higher repair and maintenance expenses, promotional activity and increased delivery mix.
The company is also spending aggressively to support growth. General and administrative expenses increased as Shake Shack invested in technology, marketing and talent while accelerating restaurant development. Preopening costs more than doubled year over year after the company opened a record 17 company-operated Shacks during the quarter. While these investments strengthen the long-term growth platform, they continue to pressure near-term earnings.
Another concern is the company's licensed business. Ongoing geopolitical conflict in the Middle East has resulted in temporary restaurant closures, reduced operating hours and weaker tourism, limiting licensing revenue growth and contributing to management's more cautious outlook on profitability.
Long-Term Growth Story Remains IntactDespite these challenges, Shake Shack continues to execute well across several strategic priorities. Same-Shack sales increased 4.6% in the first quarter, supported by 1.4% traffic growth, marking the third consecutive quarter of positive traffic gains despite unfavorable weather conditions. Restaurant-level margins also expanded 50 basis points year over year, highlighting benefits from operational improvements and supply-chain efficiencies.
The company is also making meaningful progress on its digital transformation. App downloads and digital guest acquisition increased more than 35% year over year, while management plans to launch its first loyalty program later this year to improve customer retention and spending. Meanwhile, Project Catalyst, which includes AI-powered operational tools, upgraded point-of-sale systems and enhanced analytics capabilities, is expected to improve productivity and restaurant efficiency over time.
Menu innovation also remains a competitive advantage. New offerings, including the Baby Back Rib Sandwich and Mac & Cheese, have exceeded management's expectations and generated encouraging early traffic trends in the second quarter. Combined with continued marketing initiatives and disciplined restaurant expansion, management remains confident in its long-term growth algorithm. SHAK now expects to open 60-65 company-operated restaurants this year, above its previous forecast.
Shake Shack’s Downward Estimate RevisionsAnalysts are growing increasingly pessimistic about Shake Shack’s earnings potential. Over the past 60 days, the Zacks Consensus Estimate for SHAK’s 2026 EPS has declined to $1.15 from $1.24, indicating a negative shift in sentiment.
Image Source: Zacks Investment Research
The company is poised for dismal earnings growth, with projections indicating a 12.9% decline in 2026. Meanwhile, revenue growth has been strong, with forecasts implying a 14.4% year-over-year jump in 2026.
On the other hand, stocks like Wendy's, Cheesecake Factory and Arcos Dorados' earnings in 2026 are likely to witness a decline of 34.1%, growth of 6.4% and 180.8% year over year, respectively.
Taking a Look at Shake Shack’s ValuationSHAK stock is trading below the industry. With a forward 12-month price/sales ratio of 1.42X, it lags the industry average.
P/S (F12M)
Image Source: Zacks Investment Research
Should Investors Buy the Dip?Despite its strong brand, healthy revenue momentum and ambitious expansion plans, Shake Shack faces several near-term challenges that make the stock less appealing at this stage. Persistent cost inflation, elevated investment spending, pressure on profitability and a weaker licensing business continue to weigh on earnings, while analysts have become increasingly cautious, lowering their earnings expectations.
Although the company is executing well operationally and investing in long-term growth, those initiatives have yet to translate into stronger bottom-line performance. Moreover, the stock's discounted valuation largely reflects these fundamental concerns rather than presenting a clear buying opportunity. With earnings expected to remain under pressure and the company carrying a Zacks Rank #5 (Strong Sell), investors may be better off avoiding the stock until profitability improves, earnings estimates stabilize and signs of a sustained turnaround become more evident.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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.
As dining habits shift in 2026, investors must weigh the high-growth potential of Shake Shack (SHAK +4.05%) against the steady, cash-generative powerhouse that is Texas Roadhouse (TXRH +1.31%) to determine the better buy.
Shake Shack excels as a fast-casual leader, focusing on premium ingredients and a modern digital experience. Conversely, Texas Roadhouse dominates casual dining with a massive, mostly company-operated network of steakhouses. While both navigate rising costs, they offer distinct risk-reward profiles for investors seeking exposure to the restaurant industry.
The case for Shake ShackShake Shack operates in the fast-casual space, selling premium burgers, chicken, and its namesake shakes to an urban-centric customer base. Its footprint includes 390 company-operated locations and 289 licensed units across the United States and several international hubs. The company relies on a single national broadline distributor for nearly 95% of its ingredients, and such customer concentration adds a layer of risk to the business.
In FY 2025, revenue reached nearly $1.5 billion, representing approximately 15% growth over the prior year. The company reported net income of just over $45.7 million. This result reflects a net margin of roughly 3.2%, up from 0.8% in the previous fiscal year.
On its FY2025 balance sheet, the debt-to-equity ratio is roughly 1.7x, representing total debt relative to what shareholders own in the business. Free cash flow, calculated as cash from operations minus capital spending, was $56.5 million for the fiscal year.
The case for Texas RoadhouseTexas Roadhouse operates a large-scale casual dining system primarily consisting of its flagship steakhouse brand. The company operates a portfolio that includes Bubba’s 33 and Jaggers, though the namesake steakhouse remains the primary engine among consumer discretionary stocks in the dining space. As of late 2025, the system included 816 restaurants, with a heavy focus on company-operated locations rather than a pure franchise model.
In FY 2025, total revenue reached nearly $5.9 billion, a growth rate of approximately 9.5% compared to the previous year. Net income for the period was close to $405.6 million. This generated a net margin of roughly 6.9%, showing a slight decrease from the 8.1% net margin reported in 2024.
In its December 2025 balance sheet, the debt-to-equity ratio is roughly 1.3x. The current ratio is approximately 0.5x, suggesting the company maintains a leaner cushion for immediate obligations. For the same fiscal period, free cash flow was about $342 million, providing significant cash to fund operations and expansion.
Risk profile comparisonSupply chain concentration is a primary concern for Shake Shack, as the company relies on a single distributor and a limited pool of beef processors. It also faces operational risks from licensed units where it lacks day-to-day control over brand standards. Finally, the rapid expansion of digital ordering via platforms such as kiosks increases exposure to potential data breaches and cybersecurity threats.
Commodity cost inflation poses a significant threat to Texas Roadhouse, as its profitability is highly sensitive to fluctuating beef prices. The business also carries geographic concentration risk, with approximately 21% of company-operated restaurants located in Texas and Florida. Furthermore, persistent labor market pressures and rising wages could strain operating margins if the company cannot retain enough qualified personnel.
Valuation comparisonTexas Roadhouse trades at a lower earnings multiple, while Shake Shack appears more attractive based on its total revenue relative to market value.
MetricShake ShackTexas RoadhouseSector BenchmarkForward P/E52.4x29.6x93.3xP/S ratio1.6x2.1xn/aSector benchmark uses the SPDR XLY sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
In the current ‘K-shaped’ economic environment in the U.S., where the wealthy continue to see their situation improve while the average consumer feels squeezed, affordable dining options like Texas Roadhouse and Shake Shack are a good place to look for restaurant investments.
While the U.S. economy continues to grow, Texas Roadhouse’s customer remains somewhat wary of increasing spending. The company reported labor and food cost inflation that outpaced the growth in foot traffic. That suggests some weakness for the chain. Texas Roadhouse’s locations are overweighted in Texas and Florida, the latter of which is particularly sensitive to consumer spending cuts during tight economic times.
Shake Shack, meanwhile, reported that foot traffic to locations increased for the third-straight quarter in the first quarter of 2026. The company is pushing a ‘We Really Cook’ campaign designed to differentiate the chain from others through its commitment to fresh ingredients and on-site cooking.
For 2026, analysts expect Shack Shake sales to grow neaerly 16%, though with roughly the same net income. Texas Roadhouse, on the other hand, is seen growing sales by about 11%, and while net income will grow, it won’t keep pace with revenue, so the overall net margin should decline.
Shake Shack’s growth is appealing, and while its forward price-to-earnings ratio is a premium, its lower price-to-sales ratio suggests there is value to capture for a long-term investor compared to Texas Roadhouse.
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.
Calgary, Alberta, June 22, 2026 (GLOBE NEWSWIRE) -- Following the opening of its first Calgary location at CF Chinook Centre, Shake Shack Canada is expanding its presence in Alberta with the announcement of its first-ever drive-thru restaurant, expected to open this fall 2026 at 9253 Macleod Trail Southwest.
Calgary was selected for Shake Shack's inaugural drive-thru location in Canada, recognizing the demand for on-the-go dining in the city and the enthusiastic response the brand has received since opening at CF Chinook Centre.
Expanding its footprint with a drive-thru was a natural next step for Shake Shack Canada. After the opening of Macleod Trail, Shacks in Alberta are expected to generate approximately 200 jobs for the local community.
"Calgary was the clear choice for our first drive-thru location in Canada," said Billy Richmond, Business Director, Shake Shack Canada. "It's a city where driving is a part of everyday life, and we wanted to create a Shack experience that offers guests greater convenience year-round. Hospitality is at the heart of everything we do, and the drive-thru gives us another way to deliver that experience beyond our restaurant walls.”
The new drive-thru location will deliver the same high-quality experience guests expect from Shake Shack by upholding the brand’s signature cooked-to-order standards. Guests can expect the same commitment to quality, craftsmanship and hospitality that defines the brand, including burgers made with 100% Alberta beef.
A media kit with high resolution imagery can be found
here. For more information or to coordinate interviews, please contact
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, one in Alberta, 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 695 locations system-wide, including over 450 in 35 U.S. States and the District of Columbia, and over 245 international locations across London, Hong Kong, Shanghai, Singapore, Mexico City, Istanbul, Dubai, Tokyo, Seoul and more.
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.
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]
The company provided insights into its fiscal second-quarter performance, emphasizing that while its fundamental business drivers remain strong, the current environment has necessitated an adjustment in guidance.
Cuts Q2 Guidance During Macro PressuresThe company lowered its second-quarter guidance, reducing revenue expectations to $415 million–$420 million from $424 million–$428 million, still above the $371.9 million estimate.
Same-Shack sales growth guidance was trimmed to 2.5%–3% from 3%–5% for the quarter.
For full year, the company trimmed EBITDA guidance to $225 million–$235 million from $230 million–$245 million. Also, the company reduced net income outlook to $45 million–$55 million from $50 million–$60 million.
Shake Shack’s management cited uncertainties in the market for the guidance cut.
SHAK Technical Analysis: Bearish Trend With Easing DownsideCurrently, Shake Shack’s stock is significantly below its moving averages, with the price trading 18.7% below the 20-day simple moving average (SMA) of $68.63 and 34.3% below the 50-day SMA of $84.91. The moving average convergence divergence (MACD) is above its signal line, suggesting that downside pressure is easing, although the overall trend remains bearish.
The stock has faced a steep decline of 56.45% over the past 12 months, indicating a challenging year for investors. The recent death cross in September 2025, where the 50-day SMA crossed below the 200-day SMA, further underscores the bearish sentiment surrounding the stock.
What Shake Shack (SHAK) Does, Where Revenue Comes FromShake Shack is a burger restaurant that serves a classic American menu of premium burgers, hot dogs, crispy chicken, frozen custard, crinkle-cut fries, shakes, beer, wine, and more. The company’s burgers are made with a whole-muscle blend of all-natural, hormone and antibiotic-free Angus beef, ground fresh daily, cooked to order and served on a non-genetically modified organism (GMO) potato bun.
The company generates the majority of its revenue from the U.S., and its focus on high-quality ingredients and customer experience has positioned it as a notable player in the fast-casual dining sector. The recent guidance update reflects the company’s adaptability in a competitive landscape, emphasizing its commitment to long-term shareholder value.
SHAK Earnings Preview: Estimates and Analyst Price TargetsShake Shack is slated to provide its next financial update on July 30, 2026 (estimated).
EPS Estimate: 40 cents (Down from 44 cents) Revenue Estimate: $422.21 million (Up from $356.47 million) Valuation: P/E of 63.5x (Indicates premium valuation) Analyst Consensus & Recent Actions: The stock carries a Buy rating with a consensus price target of $113.39. Recent analyst moves include:
TD Cowen: Hold (Lowers target to $70 on May 27) Guggenheim: Buy (Lowers target to $100 on May 11) JP Morgan: Neutral (Lowers target to $85 on May 8) How Shake Shack (SHAK) Ranks On Value, Growth and MomentumBelow is the Benzinga Edge scorecard for Shake Shack, highlighting its strengths and weaknesses compared to the broader market:
Value Rank: 56.54 — Indicates a moderate valuation relative to peers. Growth Rank: 89.72 — Suggests strong growth potential. Momentum Rank: 2.45 — Stock is underperforming the broader market. The Verdict: Shake Shack’s Benzinga Edge signal reveals a growth-heavy profile with strong growth potential but weak momentum indicators. Investors may want to monitor the stock closely as it navigates through current market challenges.
SHAK Stock Price Activity: Shake Shack shares were down 10.85% at $55.46 at the time of publication on Tuesday, according to Benzinga Pro data.
Photo via Shutterstock
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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.
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
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
Shake Shack slashed second quarter revenue guidance by up to $13 million and cut same-shack sales growth expectations nearly in half -- just 26 days after issuing such guidance and reaffirming key full-year metrics
, /PRNewswire/ -- Shake Shack (NYSE: SHAK) 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%. Shareholders who lost money on SHAK are encouraged to submit their information now. You may also contact Joseph E. Levi, Esq. at [email protected] or (888) SueWallSt.
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%.
Management attributed the cuts to "macroeconomic uncertainty, competitive landscape, and related impacts," along with rising beef costs and weather-related sales weakness.
If you purchased Shake Shack shares and suffered a loss, click here to discuss your legal rights. You may also reach Joseph E. Levi, Esq. at [email protected] or by telephone at (888) SueWallSt.
ABOUT THE FIRM -- For over two decades, SueWallSt has represented shareholders in securities investigations and recoveries. Ranked in ISS Top 50 for seven consecutive years.
Frequently Asked Questions About the SHAK Investigation
Q: Who is eligible to participate in the SHAK investigation? A: Investors who purchased SHAK stock and suffered financial losses may be eligible. Eligibility is based on purchase history 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 FY 2026 revenue, margin, and EBITDA guidance -- particularly the May 7, 2026 reaffirmation of targets that were materially reduced 26 days later on June 2, 2026.
Q: How much did SHAK stock drop? A: Shares fell approximately 9-10% on June 2, 2026, after the company disclosed material reductions across revenue, margin, and EBITDA guidance. The stock had declined approximately 39% from its early-April peak.
Q: What do SHAK investors need to do right now? A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact SueWallSt for a free, no-obligation evaluation at [email protected] or (888) SueWallSt. 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 are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.
Q: Do I need to go to court or give testimony? A: No. Participating in the investigation does not require court appearances or depositions.
CONTACT:
SueWallSt
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
[email protected]
Tel: (888) SueWallSt
Fax: (212) 363-7171
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.
Key Takeaways SHAK lowered Q2 and FY26 guidance, sending shares down 8.4% and 1.8% after-hours.Shake Shack sees Q2 revenues of $415-$420M and same-Shack sales up 2.5%-3.0%, with margins at 22%-23%.SHAK held licensed openings at ~8 and licensing revenues at $13.5-$13.7M, signaling asset-light momentum. Shake Shack Inc. (SHAK - Free Report) has revised its financial outlook for both the second quarter and full-year fiscal 2026, citing a more challenging operating environment. With the company now more than two-thirds through the quarter, the updated guidance reflects current macroeconomic uncertainty, the competitive landscape and related impacts.
Following the news, shares of SHAK declined 8.4% during trading hours and an additional 1.8% during after-hours yesterday.
Q2 & FY26 Guidance ResetShake Shack lowered expectations across several key operating and financial metrics for both the second quarter and full-year fiscal 2026.
For the fiscal second quarter ending July 1, 2026, the company now expects revenues of $415-$420 million, down from its previous guidance of $424-$428 million. Same-Shack sales growth is projected at 2.5%-3.0%, compared with the prior outlook of 3%-5%, while restaurant-level profit margin is expected to be 22%-23%, down from 24.0%-24.5%. The company also revised its company-operated restaurant opening target to approximately 16 units from the previously anticipated range of 16-19 locations.
Notably, Shake Shack maintained its outlook for licensed restaurant openings at approximately eight units and left licensing revenue guidance unchanged at $13.5-$13.7 million, indicating continued momentum in its asset-light growth initiatives.
The softer second-quarter outlook has also led to downward revisions in full-year expectations. Shake Shack now forecasts restaurant-level profit margins of 22%-23%, compared with its previous projection of 23.0%-23.5%. Adjusted EBITDA is expected to be in the range of $225-$235 million, versus the earlier outlook of $230-$245 million, while net income guidance has been lowered to $45-$55 million from $50-$60 million previously.
SHAK's Share Price PerformanceShares of SHAK have declined 29.8% year to date compared with the Zacks Retail - Restaurants industry’s 3.5% dip.
Image Source: Zacks Investment Research
The company’s performance has been pressured by the weather-related disruptions, softer tourism trends in key urban markets and ongoing inflationary pressures, particularly in beef costs. Its licensed business continues to face headwinds from geopolitical instability in the Middle East, which has resulted in temporary store closures, reduced operating hours and weaker tourism-driven demand. Earnings estimates for fiscal 2026 have declined in the past 30 days, depicting analysts' concern regarding the stock growth potential.
The Zacks Consensus Estimate for Starbucks’ 2026 sales and EPS indicates growth of 2.9% and 12.7%, respectively, from the prior-year levels.
Five Below, Inc. (FIVE - Free Report) presently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 63.4%, on average. FIVE stock has gained 17% year to date.
The Zacks Consensus Estimate for Five Below’s 2026 sales and EPS indicates growth of 11.5% and 20.2%, respectively, from the year-ago period’s levels.
Dillard's (DDS - Free Report) has a Zacks Rank of 2 at present. The company delivered a trailing four-quarter negative earnings surprise of 0.3%, on average. DDS stock has declined 2.3% year to date.
The Zacks Consensus Estimate for Dillard’s fiscal 2026 sales and EPS indicates growth of 9.3% and 11.1%, respectively, from the prior-year levels.
, /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.
New York, New York--(Newsfile Corp. - June 4, 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/300240
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 (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's cuts -- CEO Rob Lynch stated on the Q1 2026 earnings call: "We are reiterating our 2026 guidance for Shake-Shack sales, restaurant-level margins and our long-term financial targets." On that same call, Lynch broadened the adjusted EBITDA range to $230-$245M. The company cited macroeconomic uncertainty, competitive pressure, rising beef costs, and weather-related sales weakness as drivers of today's downgrade.
On the Q4 2025 earnings call on February 26, 2026, Lynch stated: "Our progress in operational excellence has unlocked a new level of confidence and capability... positions us to achieve additional cost savings and further expansion in 2026 and beyond." Levi & Korsinsky is investigating whether these statements adequately reflected conditions known to management at the time they were made.
If you purchased Shake Shack shares and suffered a loss, click here to discuss your legal rights. You may also contact Joseph E. Levi, Esq. via email at [email protected] or by telephone at (212) 363-7500.
WHY LEVI & KORSINSKY -- Ranked in ISS Securities Class Action Services' Top 50 Report for seven consecutive years, Levi & Korsinsky, LLP is a nationally recognized leader in shareholder rights litigation. With a team of over 70 professionals, the firm has recovered hundreds of millions of dollars for investors.
Frequently Asked Questions About the SHAK Investigation
Q: Who is conducting the SHAK investigation? A: Levi & Korsinsky, LLP is investigating potential securities law violations on behalf of investors who purchased SHAK securities and suffered losses. The firm is nationally recognized, ranked in the ISS Top 50 for seven consecutive years, and has recovered hundreds of millions of dollars for aggrieved investors.
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 outlooks -- including revenue, margin, and EBITDA guidance provided or reiterated as recently as May 7, 2026, just 26 days before the company announced material downward revisions across all key metrics.
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: Do I need to go to court or give testimony? A: No. Participating in the investigation does not require court appearances or depositions. If legal action is later pursued, the overwhelming majority of affected investors never appear in court either.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260604980558/en/
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
Shake Shack Inc. faces valuation pressure as fast-casual peers struggle amid fast-food value promotions and shifting consumer price sensitivity. SHAK's digital and loyalty initiatives, including the "$1-$3-$5" app deals, boosted app downloads by 35% and drove a 4.6% same-store sales increase, but margin risks remain. Management cut FY 2026 guidance: restaurant-level margin now 22–23%, adjusted EBITDA $225–235M, and EPS $1.11–1.36, reflecting SG&A deleverage and competitive headwinds.
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
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, /PRNewswire/ -- The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of Shake Shack Inc. ("Shake Shack" or "the Company") (NYSE: SHAK) for violations of the securities laws.
The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Shake Shack released its Q1 2026 financial results on May 7, 2026. The Company reported an operating loss after reporting a profit in the prior-year period. The Company also reported restaurant-level margins "slightly below" expectations. The Company then provided guidance for the full year that factors in "a degree of pressure on the consumer spending landscape and ongoing inflationary headwinds." Based on this news, shares of Shake Shack fell by more than 28.2% on the same day.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
CONTACT:
The Schall Law Firm
Brian Schall, Esq.
310-301-3335
[email protected]
www.schallfirm.com
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
On June 2, Shake Shack issued a business update reflecting ongoing macroeconomic challenges and competitive pressures. The company provided insights into its fiscal second-quarter performance, emphasizing that while its fundamental business drivers remain strong, the current environment has necessitated an adjustment in guidance.
Malcolm Ethridge, managing partner at Capital Area Planning Group, named Morgan Stanley (NYSE:MS) as his final trade.
On May 8, Citigroup analyst Keith Horowitz maintained Morgan Stanley at Neutral and raised the price target from $170 to $194.
Don't forget to check out our premarket coverage here
Jim Lebenthal, partner at Cerity Partners, picked AbbVie Inc. (NYSE:ABBV).
According to recent news, AbbVie, on May 29, announced European Commission authorization of an expanded label for VENCLYXTO® (venetoclax) to include additional combinations in previously untreated chronic lymphocytic leukemia.
Joseph M. Terranova, senior managing director for Virtus Investment Partners, recommended Cboe Global Markets, Inc. (NASDAQ:CBOE).
Price Action:
Shake Shack shares gained 1.6% to close at $53.78 on Tuesday. Morgan Stanley shares fell 0.9% to settle at $210.25 during the session. AbbVie shares rose 1.1% to settle at $225.42 on Tuesday. Cboe Global Markets gained 3.7% on Tuesday. Photo via Shutterstock
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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.
, /PRNewswire/ -- The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of Shake Shack Inc. ("Shake Shack" or "the Company") (NYSE: SHAK) for violations of the securities laws.
The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Shake Shack released its Q1 2026 financial results on May 7, 2026. The Company reported an operating loss after reporting a profit in the prior-year period. The Company also reported restaurant-level margins "slightly below" expectations. The Company then provided guidance for the full year that factors in "a degree of pressure on the consumer spending landscape and ongoing inflationary headwinds." Based on this news, shares of Shake Shack fell by more than 28.2% on the same day.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
CONTACT:
The Schall Law Firm
Brian Schall, Esq.
310-301-3335
[email protected]
www.schallfirm.com
NEW YORK--(BUSINESS WIRE)--Shake Shack Inc. (“Shake Shack” or the “Company”) (NYSE: SHAK) today announced the election of retail industry veteran Christiane Pendarvis to its Board of Directors, effective July 2. Ms. Pendarvis is a seasoned executive with more than 25 years of experience driving growth across direct-to-consumer and omnichannel businesses. She has held leadership roles at both high-growth retail brands and Fortune 500 concepts with a focus on general management and retail merchan.
