The combination of strong same-store sales growth, margin expansion, and reduced build costs suggests improving unit economics that could support accelerated expansion. The company's guidance for 55-60 company-operated openings in 2026 indicates confidence in its development model. Traders should monitor whether the margin expansion can be sustained as the company scales.
Price Chart
Executive Summary
Shake Shack reported strong fiscal year 2025 results with total revenue up 15.4% to $1.45 billion, same-Shack sales up 2.3%, and restaurant-level profit margin expanding 120 basis points to 22.6%. The company opened 45 new company-operated and 40 licensed shacks, its largest class to date, while reducing new shack build costs by ~20% to under $2 million. Fourth quarter results showed continued momentum with 21.9% revenue growth and 20.2% adjusted EBITDA growth.
Key Financial Metrics
Key Facts
- Total revenue for fiscal year 2025 was $1,445.3 million, up 15.4% year-over-year
- Same-Shack sales increased 2.3% year-over-year, marking 20 consecutive quarters of positive growth
- Restaurant-level profit margin expanded 120 basis points to 22.6% of Shack sales
- Opened 45 new company-operated shacks and 40 licensed shacks in 2025
- Reduced average net build cost for new shacks to under $2 million, down ~20% year-over-year
- Adjusted EBITDA grew 20% year-over-year to $209.9 million
Financial Impact
Revenue increased by $192.7 million year-over-year to $1.45 billion, with restaurant-level profit margin expanding to 22.6% and adjusted EBITDA reaching $209.9 million
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Company-operated Shacks | $1.4B | +15.2% |
| Licensing | $54.1M | +20.2% |
Risk Factors
- Beef costs increased by low-teens year-over-year, creating margin pressure
- Average weekly sales decreased 2.5% year-over-year to $77k despite same-store sales growth
- Fiscal 2026 guidance projects restaurant-level profit margin of 23.0%-23.5%, which would require further improvement from current levels
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001620533-26-000013 |
| Document: a4q25shareholderletter.htm | 0001620533-26-000013 |
| Document: shak-20260226.htm | 0001620533-26-000013 |
| Document: 0001620533-26-000013-index-headers.html | 0001620533-26-000013 |
| Document: 0001620533-26-000013-index.html | 0001620533-26-000013 |
| Document: 0001620533-26-000013.txt | 0001620533-26-000013 |
Track record builds as more directional reports settle.
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| Type | Now | ||||
|---|---|---|---|---|---|
Aug 5, 2026 11w ago | 8-K | $74.33 $72.86 | ▼ −1.98% | ▼ −2.33% | $64.75 (−12.88%) |
Jun 2, 2026 21w ago | 8-K | $57.01 $53.78 | ▲ +5.67% | ▲ +2.70% | $64.75 (−13.59%) |
May 18, 2026 23w ago | Insider Cluster | $64.12 $65.42 | ▲ +2.02% | ▼ −0.23% | $64.75 (+0.99%) |
May 7, 2026 24w ago | 8-K | $69.24 $63.91 | ▼ −7.70% | ▼ −9.20% | $64.75 (−6.48%) |
Feb 26, 2026 34w ago | 8-K | $98.61 $96.79 | ▼ −1.85% | ▼ −0.72% | $64.75 (−34.33%) |
Feb 24, 2026 34w ago | 8-K | $92.13 $97.40 | ▲ +5.72% | ▲ +6.82% | $64.75 (−29.71%) |
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