Shake Shack Cuts Q2 Revenue to $415M-$420M and Lowers Same-Store Sales Growth
SHAK•Shake Shack cut its Q2 revenue forecast to $415m-$420m and trimmed same-store sales growth to 2.5%-3%, down from its prior 3%-5% outlook. Full-year EBITDA guidance fell to $225m-$235m, net income to $45m-$55m and restaurant-level margins to 22%-23%, triggering an 11% stock drop.
1. Q2 Guidance Revision
Shake Shack lowered its fiscal second-quarter revenue guidance to $415 million-$420 million, down from $424 million-$428 million, and cut same-shack sales growth to 2.5%-3.0% from 3.0%-5.0%. Restaurant-level profit margin forecast was trimmed to 22.0%-23.0% from 24.0%-24.5%, and company-operated openings were set at 16 locations.
2. Full-Year Outlook Reduction
For the full 2026 fiscal year, Shake Shack reduced adjusted EBITDA guidance to $225 million-$235 million (previously $230 million-$245 million) and net income to $45 million-$55 million from $50 million-$60 million. Restaurant-level profit margins were revised down to 22.0%-23.0%, reflecting ongoing input cost pressure and consumer spending variability.
3. CEO Commentary and Outlook
CEO Rob Lynch stated that while updated forecasts reflect macroeconomic uncertainty and a tougher competitive landscape, Shake Shack’s foundational growth strategies and long-term shareholder focus remain intact. The company cited tariff impacts, shifts in consumer spending, tourism volatility and rising input costs as key risk factors for the remainder of the year.
