Shake Shack (NYSE:SHAK – Get Free Report) released its earnings results on Thursday. The company reported $0.40 earnings per share for the quarter, topping analysts’ consensus estimates of $0.34 by $0.06, Zacks reports. The business had revenue of $423.27 million for the quarter, compared to analyst estimates of $426.41 million. Shake Shack had a net margin of 2.56% and a return on equity of 9.29%. The business’s revenue was up 15.2% on a year-over-year basis. During the same period last year, the company posted $0.36 EPS.
Here are the key takeaways from Shake Shack’s conference call:
- Company-operated same-Shack sales rose 2.5%, including 0.8% traffic growth, extending the company’s streak to 23 quarters of positive comps and five quarters of positive traffic. Total revenue increased 15.2% and adjusted EBITDA rose 16% year over year.
- Restaurant-level margin was 22.5%, down 30 basis points, as higher labor and delivery costs offset lower food and paper costs. Management expects full-year adjusted EBITDA to land toward the low end of its $225 million–$235 million target range.
- Shake Shack opened a record 21 company-operated Shacks in the quarter and remains on track for 60–65 openings in 2026. New locations are initially less profitable and can weigh on comps, though management said they are tracking toward expected three-year returns.
- Management described a challenging consumer backdrop, with higher-income guests supporting traffic while lower-income guests—particularly in urban markets—remain pressured. The company took an additional 1% price increase in October and expects to exit the year with about 2% gross pricing, while using targeted offers that reduce realized price-mix growth.
- Licensed Shack sales increased 8.3% to $236.8 million, and management expects licensed openings to reach the high end of its 40–45 target for 2026. New licensed locations performed well in U.S. airports, Canada, and the U.K., with further expansion planned in markets including Brazil.
Shake Shack Trading Down 4.2%
Shares of Shake Shack stock traded down $3.03 during trading hours on Thursday, hitting $69.79. The company’s stock had a trading volume of 2,031,654 shares, compared to its average volume of 1,728,924. The stock has a market cap of $2.99 billion, a price-to-earnings ratio of 74.25, a P/E/G ratio of 7.53 and a beta of 1.75. The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.64 and a current ratio of 1.67. Shake Shack has a twelve month low of $51.60 and a twelve month high of $107.46. The firm has a fifty day moving average of $65.08 and a 200-day moving average of $74.65.
Key Headlines Impacting Shake Shack
Here are the key news stories impacting Shake Shack this week:
- Positive Sentiment: Third-quarter earnings were $0.40 per share, topping the roughly $0.34 analyst consensus and rising from $0.36 a year earlier. Shake Shack tops Q3 earnings estimates
- Positive Sentiment: Traffic increased for a fifth consecutive quarter, indicating continued customer demand and supporting sales growth. Shake Shack reports fifth consecutive quarter of traffic growth
- Neutral Sentiment: Revenue climbed 15.2% year over year to $423.27 million, but the gain was tempered by the miss against analysts’ $426.41 million estimate. Shake Shack third-quarter revenue misses estimates
- Negative Sentiment: Shake Shack forecast 2026 revenue of $1.6 billion to $1.7 billion, below the approximately $1.7 billion analyst consensus at the midpoint, and cited a challenging consumer backdrop. The cautious outlook and quarterly sales miss are potential headwinds. Stocks making the biggest moves premarket
Analyst Ratings Changes
A number of research firms have recently issued reports on SHAK. Seaport Research Partners assumed coverage on Shake Shack in a research report on Wednesday, September 16th. They issued a “neutral” rating for the company. TD Cowen reissued a “hold” rating on shares of Shake Shack in a research note on Wednesday, August 5th. Morgan Stanley upped their target price on Shake Shack from $74.00 to $79.00 and gave the company an “equal weight” rating in a report on Thursday, October 15th. Piper Sandler cut their target price on Shake Shack from $79.00 to $66.00 and set a “neutral” rating for the company in a research note on Tuesday, July 14th. Finally, Wall Street Zen raised Shake Shack from a “sell” rating to a “hold” rating in a research note on Saturday, September 12th. Sixteen investment analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $87.00.
View Our Latest Report on Shake Shack
About Shake Shack
Shake Shack Inc operates a fast-casual restaurant chain known for made-to-order burgers, chicken sandwiches, hot dogs, crinkle-cut fries, frozen custard, milkshakes and beverages. Its menu also includes vegetarian and other specialty items, with offerings varying by location. The company emphasizes hospitality, quality ingredients and restaurant designs intended to support both dine-in and takeout service.
The business began as a temporary hot dog cart in Madison Square Park in New York City in 2001 and opened its first permanent restaurant there in 2004.
Featured Stories
- Five stocks we like better than Shake Shack
- Google’s Credit Backstop May Be TeraWulf’s Biggest Advantage
- Could the Midterms Revive Medicare for All? 3 Healthcare Stocks to Watch
- Qualcomm Beat Earnings, But Its Fastest-Growing Businesses Have a Catch
- Oil, Uranium, or Renewables? 3 Energy Plays for a Changing Market
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.
