The sharp EPS beat vs low bar provides a near-term catalyst, but declining profitability and reaffirmed (not raised) guidance suggest headwinds persist. Watch the conference call for commentary on beef cost trajectory, pricing plans, and FY H2 margin outlook.
Price Chart
Executive Summary
Shake Shack reported Q2 2026 GAAP diluted EPS of $0.37, beating consensus of $0.30 by 23%, on revenue of $417.6M (just above $416.9M consensus, +17.2% YoY). However, operating income fell to $20.7M from $22.4M, net income declined to $16.9M from $18.5M, and restaurant-level profit margin contracted 90bps to 23.0% as record-high beef costs overwhelmed pricing discipline. FY2026 guidance was maintained, not raised.
Key Financial Metrics
Key Facts
- GAAP diluted EPS $0.37 vs consensus $0.30 (beat 23.3%)
- Total revenue $417.6M up 17.2% YoY, just above $416.9M consensus
- Same-Shack sales +3.5% (traffic +2.0%, price/mix +1.5%) — 22nd consecutive positive quarter
- Operating income $20.7M vs $22.4M YoY (-7.6%), net income $16.9M vs $18.5M (-8.7%)
- Restaurant-level profit margin 23.0% vs 23.9% YoY (-90bps) on mid-teen beef inflation
- Adjusted EBITDA $61.2M up 3.9% YoY but margin fell to 14.7% from 16.5%
- Opened 16 net new Company-operated Shacks (33 YTD), on track for 60-65 in FY26
- FY2026 guidance maintained: revenue $1.6B-$1.7B, adj. EBITDA $225M-$235M
Financial Impact
EPS beat of $0.07 per share, but operating income down $1.7M and net income down $1.6M YoY; margin compression of 90-180bps driven by beef inflation
Risk Factors
- Continued beef inflation exceeding mitigation efforts
- Consumer spending pressure limiting pricing power
- Delivery commission growth pressuring other opex
- Tough YoY comparisons in H2 2026
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001620533-26-000033 |
| Document: a2q26shareholderletter.htm | 0001620533-26-000033 |
| Document: shak-20260805.htm | 0001620533-26-000033 |
| Document: 0001620533-26-000033-index-headers.html | 0001620533-26-000033 |
| Document: 0001620533-26-000033-index.html | 0001620533-26-000033 |
| Document: 0001620533-26-000033.txt | 0001620533-26-000033 |
| 8-K Data (Synthetic) | 0001620533-26-000033 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 5, 2026 11w ago | 8-K | $74.33 $72.86 | ▼ −1.98% | ▼ −2.33% | $64.89 (−12.70%) |
Jun 2, 2026 20w ago | 8-K | $57.01 $53.78 | ▲ +5.67% | ▲ +2.70% | $64.89 (−13.82%) |
May 18, 2026 23w ago | Insider Cluster | $64.12 $65.42 | ▲ +2.02% | ▼ −0.23% | $64.89 (+1.20%) |
May 7, 2026 24w ago | 8-K | $69.24 $63.91 | ▼ −7.70% | ▼ −9.20% | $64.89 (−6.28%) |
Feb 26, 2026 34w ago | 8-K | $98.61 $96.79 | ▼ −1.85% | ▼ −0.72% | $64.89 (−34.20%) |
Feb 24, 2026 34w ago | 8-K | $92.13 $97.40 | ▲ +5.72% | ▲ +6.82% | $64.89 (−29.57%) |
US Market Status
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