Shake Shack Announces Fourth Quarter and Fiscal Year 2025 Financial Results

2/26/26 7:00:00 AM ET

$SHAK

Restaurants

Consumer Discretionary

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Financial Highlights for the Fourth Quarter 2025:

Total revenue of $400.5 million, up 21.9% versus 2024, including $385.3 million of Shack sales and $15.2 million of Licensing revenue.
System-wide sales of $618.0 million, up 23.4% versus 2024.
Same-Shack sales up 2.1% versus 2024.
Operating income of $18.7 million.
- Restaurant-level profit⁽¹⁾ of $87.4 million, or 22.7% of Shack sales.
Net income of $13.0 million.
- Adjusted EBITDA⁽¹⁾ of $56.1 million.
Net income attributable to Shake Shack Inc. of $11.8 million, or earnings of $0.28 per diluted share.
- Adjusted pro forma net income⁽¹⁾ of $16.6 million, or earnings of $0.37 per fully exchanged and diluted share.
Opened 15 new Company-operated Shacks and 17 new licensed Shacks.

Financial Highlights for the Fiscal Year 2025:

Total revenue of $1,445.3 million, up 15.4% versus 2024, including $1,391.2 million of Shack sales and $54.1 million of Licensing revenue.
System-wide sales of $2,228.8 million, up 15.9% versus 2024.
Same-Shack sales up 2.3% versus 2024.
Operating income of $62.5 million.
- Restaurant-level profit⁽¹⁾ of $314.5 million, or 22.6% of Shack sales.
Net income of $49.7 million.
- Adjusted EBITDA⁽¹⁾ of $209.9 million.
Net income attributable to Shake Shack Inc. of $45.7 million, or earnings of $1.09 per diluted share.
- Adjusted pro forma net income⁽¹⁾ of $58.3 million, or earnings of $1.32 per fully exchanged and diluted share.
Opened 45 new Company-operated Shacks and 40 new licensed Shacks.

Shake Shack Inc. ("Shake Shack" or the "Company") (NYSE:SHAK) has posted its results for the fourth quarter and the fiscal year ended December 31, 2025 in a Shareholder Letter in the Quarterly Results section of the Company's Investor Relations website, which can be found here: Q4 2025 Shareholder Letter.

Shake Shack will host a conference call at 8:00 a.m. ET. Hosting the call will be Robert Lynch, Chief Executive Officer. The conference call can be accessed live over the phone by dialing (877) 407-0792, or for international callers by dialing (201) 689-8263. A replay of the call will be available until March 5, 2026 by dialing (844) 512-2921 or for international callers by dialing (412) 317-6671; the passcode is 13757509.

The live audio webcast of the conference call will be accessible in the Events & Presentations section of the Company's Investor Relations website at investor.shakeshack.com. An archived replay of the webcast will also be available shortly after the live event has concluded.

(1)

Restaurant-level profit, Adjusted EBITDA and Adjusted pro forma net income are non-GAAP measures. A reconciliation to the most directly comparable financial measures presented in accordance with GAAP is set forth in the schedules accompanying this release. See "Non-GAAP Financial Measures" below.

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 close to 430 in 35 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.

Skip the line with the Shack App, a mobile ordering app that lets you save time by ordering ahead! Guests can select their location, pick their food, choose a pickup time and their meal will be cooked-to-order and timed to arrival. Available on iOS and Android.

Definitions

The following definitions apply to these terms as used in this release:

"Shack sales" is defined as the aggregate sales of food, beverages, gift card breakage income and Shake Shack branded merchandise at Company-operated Shacks and excludes sales from licensed Shacks.

"System-wide sales" is an operating measure and consists of sales from Company-operated Shacks and licensed Shacks. The Company does not recognize the sales from licensed Shacks as revenue. Of these amounts, revenue is limited to licensing revenue based on a percentage of sales from licensed Shacks, as well as certain up-front fees, such as territory fees, opening fees, and termination fees.

"Same-Shack sales" represents Shack sales for the comparable Shack base, which is defined as the number of Company-operated Shacks open for 24 full fiscal months or longer. For consecutive days that Shacks were temporarily closed, the comparative period was also adjusted.

"Restaurant-level profit," a non-GAAP measure, is defined as Shack sales less Shack-level operating expenses including Food and paper costs, Labor and related expenses, Other operating expenses and Occupancy and related expenses.

"Restaurant-level profit margin," a non-GAAP measure, is defined as Shack sales less Shack-level operating expenses including Food and paper costs, Labor and related expenses, Other operating expenses and Occupancy and related expenses as a percentage of Shack sales.

"EBITDA," a non-GAAP measure, is defined as Net income before interest expense (net of interest income), Income tax expense, and Depreciation and amortization expense.

"Adjusted EBITDA," a non-GAAP measure, is defined as EBITDA (as defined above), excluding equity-based compensation expense, Impairments, loss on disposal of assets, and Shack closures, amortization of cloud-based software implementation costs, as well as certain non-recurring items that the Company does not believe directly reflect its core operations and may not be indicative of the Company's recurring business operations.

"Adjusted pro forma net income," a non-GAAP measure, represents Net income attributable to Shake Shack Inc. assuming the full exchange of all outstanding SSE Holdings, LLC membership interests ("LLC Interests") for shares of Class A common stock, adjusted for certain non-recurring items that the Company does not believe are directly reflected to its core operations and may not be indicative of its recurring business operations.

SHAKE SHACK INC. CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands, except share and per share amounts)

		December 31 2025			December 25 2024
ASSETS
Current assets
	Cash and cash equivalents	$	360,123		$	320,714
	Accounts receivable, net		32,962			19,687
	Inventories		7,182			6,014
	Prepaid expenses and other current assets		30,080			21,801
	Total current assets		430,347			368,216
Property and equipment, net of accumulated depreciation of $551,004 and $457,186, respectively.			625,851			551,600
Operating lease assets			507,253			424,611
Deferred income taxes, net			322,385			341,586
Other assets			10,373			10,958
TOTAL ASSETS		$	1,896,209		$	1,696,971
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
	Accounts payable	$	24,747		$	23,609
	Accrued expenses		103,354			63,005
	Accrued wages and related liabilities		25,481			25,422
	Operating lease liabilities, current		63,553			55,739
	Other current liabilities		27,783			19,538
	Total current liabilities		244,918			187,313
Long-term debt			247,731			246,683
Long-term operating lease liabilities			575,138			494,499
Liabilities under tax receivable agreement, net of current portion			244,463			247,017
Other long-term liabilities			30,210			27,833
Total liabilities			1,342,460			1,203,345
Commitments and contingencies
Stockholders' equity:
	Preferred stock, no par value—10,000,000 shares authorized; none issued and outstanding as of December 31, 2025 and December 25, 2024.		—			—
	Class A common stock, $0.001 par value—200,000,000 shares authorized; 40,254,281 and 40,068,068 shares issued and outstanding as of December 31, 2025 and December 25, 2024, respectively.		40			40
	Class B common stock, $0.001 par value—35,000,000 shares authorized; 2,434,789 and 2,455,713 shares issued and outstanding as of December 31, 2025 and December 25, 2024, respectively.		2			2
	Additional paid-in capital		452,577			442,993
	Retained earnings		72,709			26,984
	Accumulated other comprehensive loss		(1	)		(1	)
	Total stockholders' equity attributable to Shake Shack Inc.		525,327			470,018
Non-controlling interests			28,422			23,608
Total equity			553,749			493,626
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	1,896,209		$	1,696,971

SHAKE SHACK INC. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (in thousands, except per share amounts)

			Fiscal Quarter Ended										Fiscal Year Ended
			December 31 2025⁽¹⁾					December 25 2024					December 31 2025⁽¹⁾					December 25 2024
Shack sales			$	385,258		96.2	%	$	316,632		96.3	%	$	1,391,166		96.3	%	$	1,207,561		96.4	%
Licensing revenue				15,273		3.8	%		12,052		3.7	%		54,140		3.7	%		45,047		3.6	%
TOTAL REVENUE				400,531		100.0	%		328,684		100.0	%		1,445,306		100.0	%		1,252,608		100.0	%
Shack-level operating expenses⁽²⁾:
	Food and paper costs			110,595		28.7	%		88,578		28.0	%		396,714		28.5	%		339,940		28.2	%
	Labor and related expenses			97,934		25.4	%		85,104		26.9	%		360,693		25.9	%		338,750		28.1	%
	Other operating expenses			59,868		15.5	%		47,008		14.8	%		212,677		15.3	%		178,381		14.8	%
	Occupancy and related expenses			29,413		7.6	%		24,047		7.6	%		106,632		7.7	%		93,069		7.7	%
General and administrative expenses				50,541		12.6	%		41,099		12.5	%		176,233		12.2	%		149,047		11.9	%
Depreciation and amortization expense				26,433		6.6	%		25,809		7.9	%		106,600		7.4	%		102,468		8.2	%
Pre-opening costs				5,203		1.3	%		5,118		1.6	%		18,001		1.2	%		15,547		1.2	%
Impairments, loss on disposal of assets, and Shack closures				1,800		0.4	%		1,711		0.5	%		5,248		0.4	%		32,368		2.6	%
TOTAL EXPENSES				381,787		95.3	%		318,474		96.9	%		1,382,798		95.7	%		1,249,570		99.8	%
INCOME FROM OPERATIONS				18,744		4.7	%		10,210		3.1	%		62,508		4.3	%		3,038		0.2	%
Other income, net				3,336		0.8	%		3,241		1.0	%		12,260		0.8	%		13,251		1.1	%
Interest expense				(544	)	(0.1	)%		(512	)	(0.2	)%		(2,159	)	(0.1	)%		(2,045	)	(0.2	)%
INCOME BEFORE INCOME TAXES				21,536		5.4	%		12,939		3.9	%		72,609		5.0	%		14,244		1.1	%
Income tax expense				8,537		2.1	%		3,606		1.1	%		22,903		1.6	%		3,424		0.3	%
NET INCOME				12,999		3.2	%		9,333		2.8	%		49,706		3.4	%		10,820		0.9	%
Less: Net income attributable to non-controlling interests				1,168		0.3	%		623		0.2	%		3,981		0.3	%		613		—	%
NET INCOME ATTRIBUTABLE TO SHAKE SHACK INC.			$	11,831		3.0	%	$	8,710		2.6	%	$	45,725		3.2	%	$	10,207		0.8	%

Earnings per share of Class A common stock:
		Basic	$	0.29				$	0.22				$	1.14				$	0.26
		Diluted	$	0.28				$	0.21				$	1.09				$	0.24
Weighted-average shares of Class A common stock outstanding:
		Basic		40,254					40,047					40,212					39,830
		Diluted		41,831					41,872					41,847					44,203

(1)	The Company operates on a 52/53 week fiscal year. Fiscal year 2025 had 53 weeks with the extra operating week occurring in fiscal fourth quarter 2025.
(2)	As a percentage of Shack sales.

SHAKE SHACK INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in thousands)

			Fiscal Year Ended
			December 31 2025			December 25 2024
OPERATING ACTIVITIES
Net income (including amounts attributable to non-controlling interests)			$	49,706		$	10,820
Adjustments to reconcile net income to net cash provided by operating activities:
	Depreciation and amortization expense			106,600			102,468
	Amortization of debt issuance costs			1,048			1,047
	Amortization of cloud computing assets			2,188			2,138
	Non-cash operating lease cost			88,849			77,432
	Equity-based compensation			19,503			15,915
	Deferred income taxes			16,616			(1,054	)
	Non-cash interest			45			(102	)
	Net amortization of discount on held-to-maturity securities			—			(440	)
	Impairments, loss on disposal of assets, and Shack closures			5,248			32,368
	Changes in operating assets and liabilities:
		Accounts receivable		(9,546	)		(2,839	)
		Inventories		(1,168	)		(610	)
		Prepaid expenses and other current assets		(3,115	)		(2,629	)
		Other assets		(5,959	)		(2,896	)
		Accounts payable		(1,527	)		3,356
		Accrued expenses		29,902			6,644
		Accrued wages and related liabilities		59			4,477
		Other current liabilities		3,436			(712	)
		Operating lease liabilities		(82,683	)		(77,167	)
		Other long-term liabilities		3,153			2,939
NET CASH PROVIDED BY OPERATING ACTIVITIES				222,355			171,155
INVESTING ACTIVITIES
Purchases of property and equipment				(165,849	)		(135,499	)
Maturities of held-to-maturity marketable securities				—			69,420
NET CASH USED IN INVESTING ACTIVITIES				(165,849	)		(66,079	)
FINANCING ACTIVITIES
Payments on principal of finance leases				(5,511	)		(3,964	)
Deferred financing costs				(10	)		—
Distributions paid to non-controlling interest holders				(1,842	)		(482	)
Payments under tax receivable agreement				(37	)		—
Net proceeds from stock option exercises				123			1,627
Employee withholding taxes related to net settled equity awards				(9,820	)		(6,198	)
NET CASH USED IN FINANCING ACTIVITIES				(17,097	)		(9,017	)
Effect of exchange rate changes on cash and cash equivalents				—			2
INCREASE IN CASH AND CASH EQUIVALENTS				39,409			96,061
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD				320,714			224,653
CASH AND CASH EQUIVALENTS AT END OF PERIOD			$	360,123		$	320,714

SHAKE SHACK INC.

NON-GAAP FINANCIAL MEASURES

(UNAUDITED)

To supplement the Consolidated Financial Statements, which are prepared and presented in accordance with U.S. generally accepted accounting principles ("GAAP"), the Company uses the following non-GAAP financial measures: Restaurant-level profit, Restaurant-level profit margin, EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted pro forma net income and adjusted pro forma earnings per fully exchanged and diluted share (collectively the "non-GAAP financial measures").

Restaurant-Level Profit

Restaurant-level profit is defined as Shack sales less Shack-level operating expenses including Food and paper costs, Labor and related expenses, Other operating expenses and Occupancy and related expenses.

How This Measure Is Useful

When used in conjunction with GAAP financial measures, Restaurant-level profit and Restaurant-level profit margin are supplemental measures of operating performance that the Company believes are useful measures to evaluate the performance and profitability of its Shacks. Additionally, Restaurant-level profit and Restaurant-level profit margin are key metrics used internally by management to develop internal budgets and forecasts, as well as assess the performance of its Shacks relative to budget and against prior periods. It is also used to evaluate employee compensation as it serves as a metric in certain performance-based employee bonus arrangements. The Company believes presentation of Restaurant-level profit and Restaurant-level profit margin provides investors with a supplemental view of its operating performance that can provide meaningful insights to the underlying operating performance of the Shacks, as these measures depict the operating results that are directly impacted by the Shacks and exclude items that may not be indicative of, or are unrelated to, the ongoing operations of the Shacks. It may also assist investors to evaluate the Company's performance relative to peers of various sizes and maturities and provides greater transparency with respect to how management evaluates the business, as well as the financial and operational decision-making.

Limitations of the Usefulness of this Measure

Restaurant-level profit and Restaurant-level profit margin may differ from similarly titled measures used by other companies due to different methods of calculation. Presentation of Restaurant-level profit and Restaurant-level profit margin is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Restaurant-level profit excludes certain costs, such as General and administrative expenses and Pre-opening costs, which are considered normal, recurring cash operating expenses and are essential to support the operation and development of the Company's Shacks. Therefore, this measure may not provide a complete understanding of the Company's operating results as a whole and Restaurant-level profit and Restaurant-level profit margin should be reviewed in conjunction with the Company's GAAP financial results. A reconciliation of Restaurant-level profit to Income from Operations, the most directly comparable GAAP financial measure, is set forth below.

		Fiscal Quarter Ended						Fiscal Year Ended
(dollar amounts in thousands)		December 31 2025⁽¹⁾			December 25 2024			December 31 2025⁽¹⁾			December 25 2024
Income from operations		$	18,744		$	10,210		$	62,508		$	3,038
Less:
	Licensing revenue		15,273			12,052			54,140			45,047
Add:
	General and administrative expenses		50,541			41,099			176,233			149,047
	Depreciation and amortization expense		26,433			25,809			106,600			102,468
	Pre-opening costs		5,203			5,118			18,001			15,547
	Impairments, loss on disposal of assets, and Shack closures		1,800			1,711			5,248			32,368
Adjustment:
	Employee benefit charges⁽²⁾		—			—			—			453
Restaurant-level profit		$	87,448		$	71,895		$	314,450		$	257,874

Total revenue		$	400,531		$	328,684		$	1,445,306		$	1,252,608
Less: Licensing revenue			15,273			12,052			54,140			45,047
Shack sales		$	385,258		$	316,632		$	1,391,166		$	1,207,561

Restaurant-level profit margin⁽³⁾			22.7	%		22.7	%		22.6	%		21.4	%

(1)	The Company operates on a 52/53 week fiscal year. Fiscal year 2025 had 53 weeks with the extra operating week occurring in fiscal fourth quarter 2025.
(2)	Expenses related to California healthcare charges for fiscal 2020 through 2023 which do not represent fiscal 2024 Labor and related expenses.
(3)	As a percentage of Shack sales.

SHAKE SHACK INC.

NON-GAAP FINANCIAL MEASURES

(UNAUDITED)

EBITDA and Adjusted EBITDA

EBITDA, a non-GAAP measure, is defined as Net income before interest expense (net of interest income), Income tax expense and Depreciation and amortization expense. Adjusted EBITDA, a non-GAAP measure, is defined as EBITDA excluding equity-based compensation expense, Impairments, loss on the disposal of assets, and Shack closures, amortization of cloud-based software implementation costs, as well as certain non-recurring items that the Company does not believe directly reflect its core operations and may not be indicative of the Company's recurring business operations.

How These Measures Are Useful

When used in conjunction with GAAP financial measures, EBITDA and adjusted EBITDA are supplemental measures of operating performance that the Company believes are useful measures to facilitate comparisons to historical performance and competitors' operating results. Adjusted EBITDA is a key metric used internally by management to develop internal budgets and forecasts and also serves as a metric in its performance-based equity incentive programs and certain bonus arrangements. The Company believes presentation of EBITDA and adjusted EBITDA provides investors with a supplemental view of the Company's operating performance that facilitates analysis and comparisons of its ongoing business operations because they exclude items that may not be indicative of the Company's ongoing operating performance.

Limitations of the Usefulness of These Measures

EBITDA and adjusted EBITDA may differ from similarly titled measures used by other companies due to different methods of calculation. Presentation of EBITDA and adjusted EBITDA is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. EBITDA and adjusted EBITDA exclude certain normal recurring expenses. Therefore, these measures may not provide a complete understanding of the Company's performance and should be reviewed in conjunction with the GAAP financial measures.

	Fiscal Quarter Ended				Fiscal Year Ended
(dollar amounts in thousands)	December 31 2025⁽¹⁾		December 25 2024		December 31 2025⁽¹⁾		December 25 2024
Net income	$	12,999	$	9,333	$	49,706	$	10,820
Depreciation and amortization expense		26,433		25,809		106,600		102,468
Interest expense, net		499		474		1,994		1,284
Income tax expense		8,537		3,606		22,903		3,424
EBITDA		48,468		39,222		181,203		117,996

Equity-based compensation		5,330		4,376		19,503		15,915
Amortization of cloud-based software implementation costs		512		561		2,188		2,138
Impairments, loss on disposal of assets, and Shack closures		1,800		1,711		5,248		32,368
Legal settlements⁽²⁾		—		—		983		—
Severance		—		—		379		—
Restatement costs⁽³⁾		—		778		354		2,378
CEO transition costs		—		38		35		679
Employee benefit charges⁽⁴⁾		—		—		—		453
Other⁽⁵⁾		—		8		3		3,652
Adjusted EBITDA	$	56,110	$	46,694	$	209,896	$	175,579

Adjusted EBITDA margin⁽⁶⁾		14.0%		14.2%		14.5%		14.0%

(1)	The Company operates on a 52/53 week fiscal year. Fiscal year 2025 had 53 weeks with the extra operating week occurring in fiscal fourth quarter 2025.
(2)	Expenses incurred to establish accruals related to the settlements of legal matters.
(3)	Expenses incurred related to the restatement of prior periods in the 2023 Form 10-K.
(4)	Expenses related to California healthcare charges for fiscal 2020 through 2023 which do not represent fiscal 2024 Labor and related expenses.
(5)	Expenses incurred for professional fees related to non-recurring matters.
(6)	Calculated as a percentage of Total revenue, which was $400.5 million and $1,445.3 million for the fiscal quarter and fiscal year ended December 31, 2025, respectively, and $328.7 million and $1,252.6 million for the fiscal quarter and fiscal year ended December 25, 2024, respectively.

SHAKE SHACK INC.

NON-GAAP FINANCIAL MEASURES

(UNAUDITED)

Adjusted Pro Forma Net Income (Loss) and Adjusted Pro Forma Earnings (Loss) Per Fully Exchanged and Diluted Share

Adjusted pro forma net income represents Net income attributable to Shake Shack Inc. assuming the full exchange of all outstanding SSE Holdings, LLC membership interests ("LLC Interests") for shares of Class A common stock, adjusted for certain non-recurring items that the Company does not believe are directly related to its core operations and may not be indicative of recurring business operations. Adjusted pro forma earnings per fully exchanged and diluted share is calculated by dividing adjusted pro forma net income by the weighted-average shares of Class A common stock outstanding, assuming the full exchange of all outstanding LLC Interests, after giving effect to the dilutive effect of outstanding equity-based awards.

How These Measures Are Useful

When used in conjunction with GAAP financial measures, adjusted pro forma net income and adjusted pro forma earnings per fully exchanged and diluted share are supplemental measures of operating performance that the Company believes are useful measures to evaluate performance period-over-period and relative to its competitors. By assuming the full exchange of all outstanding LLC Interests, the Company believes these measures facilitate comparisons with other companies that have different organizational and tax structures, as well as comparisons period over period because it eliminates the effect of any changes in Net income attributable to Shake Shack Inc. driven by increases in its ownership of SSE Holdings, which are unrelated to the Company's operating performance, and excludes items that are non-recurring or may not be indicative of ongoing operating performance.

Limitations of the Usefulness of These Measures

Adjusted pro forma net income and adjusted pro forma earnings per fully exchanged and diluted share may differ from similarly titled measures used by other companies due to different methods of calculation. Presentation of adjusted pro forma net income and adjusted pro forma earnings per fully exchanged and diluted share should not be considered alternatives to Net income and earnings (loss) per share, as determined under GAAP. While these measures are useful in evaluating the Company's performance, it does not account for the earnings (loss) attributable to the non-controlling interest holders and therefore does not provide a complete understanding of the Net income attributable to Shake Shack Inc. Adjusted pro forma net income and adjusted pro forma earnings per fully exchanged and diluted share should be evaluated in conjunction with GAAP financial results. A reconciliation of adjusted pro forma net income to Net income attributable to Shake Shack Inc., the most directly comparable GAAP measure, and the computation of adjusted pro forma earnings per fully exchanged and diluted share are set forth below.

			Fiscal Quarter Ended				Fiscal Year Ended
(in thousands, except per share amounts)			December 31 2025⁽¹⁾		December 25 2024		December 31 2025⁽¹⁾		December 25 2024
Numerator:
	Net income attributable to Shake Shack Inc.		$	11,831	$	8,710	$	45,725	$	10,207
	Adjustments:
		Reallocation of Net income attributable to non-controlling interests from the assumed exchange of LLC Interests⁽²⁾		1,168		623		3,981		613
		Impairment charges and Shack closures⁽³⁾		1,045		1,191		2,949		29,348
		Legal settlements⁽⁴⁾		—		—		983		—
		Severance		—		—		379		—
		Restatement costs⁽⁵⁾		—		778		354		2,378
		CEO transition costs		—		38		35		679
		Employee benefit charges⁽⁶⁾		—		—		—		453
		Other⁽⁷⁾		—		8		3		3,652
		Tax impact of above adjustments⁽⁸⁾		2,543		269		3,906		(6,785	)
	Adjusted pro forma net income		$	16,587	$	11,617	$	58,315	$	40,545

Denominator:
	Weighted-average shares of Class A common stock outstanding—diluted			41,831		41,872		41,847		44,203
	Adjustments:
		Assumed exchange of LLC Interests for shares of Class A common stock⁽²⁾		2,434		2,456		2,441		—
	Adjusted pro forma fully exchanged weighted-average shares of Class A common stock outstanding—diluted			44,265		44,328		44,288		44,203

Adjusted pro forma loss per fully exchanged share—diluted			$	0.37	$	0.26	$	1.32	$	0.92

		Fiscal Quarter Ended				Fiscal Year Ended
		December 31 2025⁽¹⁾		December 25 2024		December 31 2025⁽¹⁾		December 25 2024
Earnings per share of Class A common stock—diluted		$	0.28	$	0.21	$	1.09	$	0.24
	Assumed exchange of LLC Interests for shares of Class A common stock⁽²⁾		0.01		—		0.03		—
	Non-GAAP adjustments⁽⁹⁾		0.08		0.05		0.20		0.68
Adjusted pro forma earnings per fully exchanged share—diluted		$	0.37	$	0.26	$	1.32	$	0.92

(1)	The Company operates on a 52/53 week fiscal year. Fiscal year 2025 had 53 weeks with the extra operating week occurring in fiscal fourth quarter 2025.
(2)	Assumes the exchange of all outstanding LLC Interests for shares of Class A common stock, resulting in the elimination of the non-controlling interest and recognition of the net income attributable to non-controlling interests.
(3)	Expenses incurred related to Shack closures and impairment charges during fiscal 2024 and fiscal 2025.
(4)	Expenses incurred to establish accruals related to the settlements of legal matters.
(5)	Expenses incurred related to the restatement of prior periods in the 2023 Form 10-K.
(6)	Expenses related to California healthcare charges for fiscal 2020 through 2023 which do not represent fiscal 2024 Labor and related expenses.
(7)	Expenses incurred for professional fees related to non-recurring matters.
(8)	Represents the tax effect of the aforementioned adjustments and pro forma adjustments to reflect corporate income taxes at assumed effective tax rates of 26.5% and 24.6% for the fiscal quarter and fiscal year ended December 31, 2025, respectively, and 22.3% and 20.1% for the fiscal quarter and fiscal year ended December 25, 2024, respectively. Amounts include provisions for U.S. federal income taxes, certain LLC entity-level taxes and foreign withholding taxes, assuming the highest statutory rates apportioned to each applicable state, local and foreign jurisdiction.
(9)	Represents the per share impact of non-GAAP adjustments for each period. Refer to the reconciliation of Adjusted pro forma net income above, for additional information.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260225684967/en/

Media:

Meg Davis, Shake Shack

[email protected]

Investor Relations:

Alison Sternberg, Shake Shack

Head of Investor Relations

(844) SHACK-04 (844-742-2504)

[email protected]

Get the next $SHAK alert in real time by email

Recent Analyst Ratings for

$SHAK

Date	Price Target	Rating	Analyst
3/9/2026	$118.00	Outperform	Wolfe Research
3/6/2026	$125.00	Buy	DA Davidson
1/20/2026	$125.00	Equal-Weight → Overweight	Morgan Stanley
1/6/2026	$105.00	Hold → Buy	Deutsche Bank
12/18/2025	$90.00	Underweight → Neutral	Analyst
11/14/2025		Hold → Buy	Loop Capital
10/28/2025	$95.00	Neutral	Mizuho
10/22/2025	$160.00 → $115.00	Overweight	Barclays

More analyst ratings

Shake Shack Announces Fourth Quarter and Fiscal Year 2025 Financial Results

2/26/26 7:00:00 AM ET

$SHAK

Restaurants

Consumer Discretionary

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Financial Highlights for the Fourth Quarter 2025:

Total revenue of $400.5 million, up 21.9% versus 2024, including $385.3 million of Shack sales and $15.2 million of Licensing revenue.
System-wide sales of $618.0 million, up 23.4% versus 2024.
Same-Shack sales up 2.1% versus 2024.
Operating income of $18.7 million.
- Restaurant-level profit⁽¹⁾ of $87.4 million, or 22.7% of Shack sales.
Net income of $13.0 million.
- Adjusted EBITDA⁽¹⁾ of $56.1 million.
Net income attributable to Shake Shack Inc. of $11.8 million, or earnings of $0.28 per diluted share.
- Adjusted pro forma net income⁽¹⁾ of $16.6 million, or earnings of $0.37 per fully exchanged and diluted share.
Opened 15 new Company-operated Shacks and 17 new licensed Shacks.

Financial Highlights for the Fiscal Year 2025:

Total revenue of $1,445.3 million, up 15.4% versus 2024, including $1,391.2 million of Shack sales and $54.1 million of Licensing revenue.
System-wide sales of $2,228.8 million, up 15.9% versus 2024.
Same-Shack sales up 2.3% versus 2024.
Operating income of $62.5 million.
- Restaurant-level profit⁽¹⁾ of $314.5 million, or 22.6% of Shack sales.
Net income of $49.7 million.
- Adjusted EBITDA⁽¹⁾ of $209.9 million.
Net income attributable to Shake Shack Inc. of $45.7 million, or earnings of $1.09 per diluted share.
- Adjusted pro forma net income⁽¹⁾ of $58.3 million, or earnings of $1.32 per fully exchanged and diluted share.
Opened 45 new Company-operated Shacks and 40 new licensed Shacks.

(1)

About Shake Shack

Definitions

The following definitions apply to these terms as used in this release:

"Shack sales" is defined as the aggregate sales of food, beverages, gift card breakage income and Shake Shack branded merchandise at Company-operated Shacks and excludes sales from licensed Shacks.

"EBITDA," a non-GAAP measure, is defined as Net income before interest expense (net of interest income), Income tax expense, and Depreciation and amortization expense.

SHAKE SHACK INC. CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands, except share and per share amounts)

		December 31 2025			December 25 2024
ASSETS
Current assets
	Cash and cash equivalents	$	360,123		$	320,714
	Accounts receivable, net		32,962			19,687
	Inventories		7,182			6,014
	Prepaid expenses and other current assets		30,080			21,801
	Total current assets		430,347			368,216
Property and equipment, net of accumulated depreciation of $551,004 and $457,186, respectively.			625,851			551,600
Operating lease assets			507,253			424,611
Deferred income taxes, net			322,385			341,586
Other assets			10,373			10,958
TOTAL ASSETS		$	1,896,209		$	1,696,971
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
	Accounts payable	$	24,747		$	23,609
	Accrued expenses		103,354			63,005
	Accrued wages and related liabilities		25,481			25,422
	Operating lease liabilities, current		63,553			55,739
	Other current liabilities		27,783			19,538
	Total current liabilities		244,918			187,313
Long-term debt			247,731			246,683
Long-term operating lease liabilities			575,138			494,499
Liabilities under tax receivable agreement, net of current portion			244,463			247,017
Other long-term liabilities			30,210			27,833
Total liabilities			1,342,460			1,203,345
Commitments and contingencies
Stockholders' equity:
	Preferred stock, no par value—10,000,000 shares authorized; none issued and outstanding as of December 31, 2025 and December 25, 2024.		—			—
	Class A common stock, $0.001 par value—200,000,000 shares authorized; 40,254,281 and 40,068,068 shares issued and outstanding as of December 31, 2025 and December 25, 2024, respectively.		40			40
	Class B common stock, $0.001 par value—35,000,000 shares authorized; 2,434,789 and 2,455,713 shares issued and outstanding as of December 31, 2025 and December 25, 2024, respectively.		2			2
	Additional paid-in capital		452,577			442,993
	Retained earnings		72,709			26,984
	Accumulated other comprehensive loss		(1	)		(1	)
	Total stockholders' equity attributable to Shake Shack Inc.		525,327			470,018
Non-controlling interests			28,422			23,608
Total equity			553,749			493,626
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	1,896,209		$	1,696,971

SHAKE SHACK INC. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (in thousands, except per share amounts)

			Fiscal Quarter Ended										Fiscal Year Ended
			December 31 2025⁽¹⁾					December 25 2024					December 31 2025⁽¹⁾					December 25 2024
Shack sales			$	385,258		96.2	%	$	316,632		96.3	%	$	1,391,166		96.3	%	$	1,207,561		96.4	%
Licensing revenue				15,273		3.8	%		12,052		3.7	%		54,140		3.7	%		45,047		3.6	%
TOTAL REVENUE				400,531		100.0	%		328,684		100.0	%		1,445,306		100.0	%		1,252,608		100.0	%
Shack-level operating expenses⁽²⁾:
	Food and paper costs			110,595		28.7	%		88,578		28.0	%		396,714		28.5	%		339,940		28.2	%
	Labor and related expenses			97,934		25.4	%		85,104		26.9	%		360,693		25.9	%		338,750		28.1	%
	Other operating expenses			59,868		15.5	%		47,008		14.8	%		212,677		15.3	%		178,381		14.8	%
	Occupancy and related expenses			29,413		7.6	%		24,047		7.6	%		106,632		7.7	%		93,069		7.7	%
General and administrative expenses				50,541		12.6	%		41,099		12.5	%		176,233		12.2	%		149,047		11.9	%
Depreciation and amortization expense				26,433		6.6	%		25,809		7.9	%		106,600		7.4	%		102,468		8.2	%
Pre-opening costs				5,203		1.3	%		5,118		1.6	%		18,001		1.2	%		15,547		1.2	%
Impairments, loss on disposal of assets, and Shack closures				1,800		0.4	%		1,711		0.5	%		5,248		0.4	%		32,368		2.6	%
TOTAL EXPENSES				381,787		95.3	%		318,474		96.9	%		1,382,798		95.7	%		1,249,570		99.8	%
INCOME FROM OPERATIONS				18,744		4.7	%		10,210		3.1	%		62,508		4.3	%		3,038		0.2	%
Other income, net				3,336		0.8	%		3,241		1.0	%		12,260		0.8	%		13,251		1.1	%
Interest expense				(544	)	(0.1	)%		(512	)	(0.2	)%		(2,159	)	(0.1	)%		(2,045	)	(0.2	)%
INCOME BEFORE INCOME TAXES				21,536		5.4	%		12,939		3.9	%		72,609		5.0	%		14,244		1.1	%
Income tax expense				8,537		2.1	%		3,606		1.1	%		22,903		1.6	%		3,424		0.3	%
NET INCOME				12,999		3.2	%		9,333		2.8	%		49,706		3.4	%		10,820		0.9	%
Less: Net income attributable to non-controlling interests				1,168		0.3	%		623		0.2	%		3,981		0.3	%		613		—	%
NET INCOME ATTRIBUTABLE TO SHAKE SHACK INC.			$	11,831		3.0	%	$	8,710		2.6	%	$	45,725		3.2	%	$	10,207		0.8	%

Earnings per share of Class A common stock:
		Basic	$	0.29				$	0.22				$	1.14				$	0.26
		Diluted	$	0.28				$	0.21				$	1.09				$	0.24
Weighted-average shares of Class A common stock outstanding:
		Basic		40,254					40,047					40,212					39,830
		Diluted		41,831					41,872					41,847					44,203

(1)	The Company operates on a 52/53 week fiscal year. Fiscal year 2025 had 53 weeks with the extra operating week occurring in fiscal fourth quarter 2025.
(2)	As a percentage of Shack sales.

SHAKE SHACK INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in thousands)

			Fiscal Year Ended
			December 31 2025			December 25 2024
OPERATING ACTIVITIES
Net income (including amounts attributable to non-controlling interests)			$	49,706		$	10,820
Adjustments to reconcile net income to net cash provided by operating activities:
	Depreciation and amortization expense			106,600			102,468
	Amortization of debt issuance costs			1,048			1,047
	Amortization of cloud computing assets			2,188			2,138
	Non-cash operating lease cost			88,849			77,432
	Equity-based compensation			19,503			15,915
	Deferred income taxes			16,616			(1,054	)
	Non-cash interest			45			(102	)
	Net amortization of discount on held-to-maturity securities			—			(440	)
	Impairments, loss on disposal of assets, and Shack closures			5,248			32,368
	Changes in operating assets and liabilities:
		Accounts receivable		(9,546	)		(2,839	)
		Inventories		(1,168	)		(610	)
		Prepaid expenses and other current assets		(3,115	)		(2,629	)
		Other assets		(5,959	)		(2,896	)
		Accounts payable		(1,527	)		3,356
		Accrued expenses		29,902			6,644
		Accrued wages and related liabilities		59			4,477
		Other current liabilities		3,436			(712	)
		Operating lease liabilities		(82,683	)		(77,167	)
		Other long-term liabilities		3,153			2,939
NET CASH PROVIDED BY OPERATING ACTIVITIES				222,355			171,155
INVESTING ACTIVITIES
Purchases of property and equipment				(165,849	)		(135,499	)
Maturities of held-to-maturity marketable securities				—			69,420
NET CASH USED IN INVESTING ACTIVITIES				(165,849	)		(66,079	)
FINANCING ACTIVITIES
Payments on principal of finance leases				(5,511	)		(3,964	)
Deferred financing costs				(10	)		—
Distributions paid to non-controlling interest holders				(1,842	)		(482	)
Payments under tax receivable agreement				(37	)		—
Net proceeds from stock option exercises				123			1,627
Employee withholding taxes related to net settled equity awards				(9,820	)		(6,198	)
NET CASH USED IN FINANCING ACTIVITIES				(17,097	)		(9,017	)
Effect of exchange rate changes on cash and cash equivalents				—			2
INCREASE IN CASH AND CASH EQUIVALENTS				39,409			96,061
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD				320,714			224,653
CASH AND CASH EQUIVALENTS AT END OF PERIOD			$	360,123		$	320,714

SHAKE SHACK INC.

NON-GAAP FINANCIAL MEASURES

(UNAUDITED)

Restaurant-Level Profit

How This Measure Is Useful

Limitations of the Usefulness of this Measure

		Fiscal Quarter Ended						Fiscal Year Ended
(dollar amounts in thousands)		December 31 2025⁽¹⁾			December 25 2024			December 31 2025⁽¹⁾			December 25 2024
Income from operations		$	18,744		$	10,210		$	62,508		$	3,038
Less:
	Licensing revenue		15,273			12,052			54,140			45,047
Add:
	General and administrative expenses		50,541			41,099			176,233			149,047
	Depreciation and amortization expense		26,433			25,809			106,600			102,468
	Pre-opening costs		5,203			5,118			18,001			15,547
	Impairments, loss on disposal of assets, and Shack closures		1,800			1,711			5,248			32,368
Adjustment:
	Employee benefit charges⁽²⁾		—			—			—			453
Restaurant-level profit		$	87,448		$	71,895		$	314,450		$	257,874

Total revenue		$	400,531		$	328,684		$	1,445,306		$	1,252,608
Less: Licensing revenue			15,273			12,052			54,140			45,047
Shack sales		$	385,258		$	316,632		$	1,391,166		$	1,207,561

Restaurant-level profit margin⁽³⁾			22.7	%		22.7	%		22.6	%		21.4	%

(1)	The Company operates on a 52/53 week fiscal year. Fiscal year 2025 had 53 weeks with the extra operating week occurring in fiscal fourth quarter 2025.
(2)	Expenses related to California healthcare charges for fiscal 2020 through 2023 which do not represent fiscal 2024 Labor and related expenses.
(3)	As a percentage of Shack sales.

SHAKE SHACK INC.

NON-GAAP FINANCIAL MEASURES

(UNAUDITED)

EBITDA and Adjusted EBITDA

How These Measures Are Useful

Limitations of the Usefulness of These Measures

	Fiscal Quarter Ended				Fiscal Year Ended
(dollar amounts in thousands)	December 31 2025⁽¹⁾		December 25 2024		December 31 2025⁽¹⁾		December 25 2024
Net income	$	12,999	$	9,333	$	49,706	$	10,820
Depreciation and amortization expense		26,433		25,809		106,600		102,468
Interest expense, net		499		474		1,994		1,284
Income tax expense		8,537		3,606		22,903		3,424
EBITDA		48,468		39,222		181,203		117,996

Equity-based compensation		5,330		4,376		19,503		15,915
Amortization of cloud-based software implementation costs		512		561		2,188		2,138
Impairments, loss on disposal of assets, and Shack closures		1,800		1,711		5,248		32,368
Legal settlements⁽²⁾		—		—		983		—
Severance		—		—		379		—
Restatement costs⁽³⁾		—		778		354		2,378
CEO transition costs		—		38		35		679
Employee benefit charges⁽⁴⁾		—		—		—		453
Other⁽⁵⁾		—		8		3		3,652
Adjusted EBITDA	$	56,110	$	46,694	$	209,896	$	175,579

Adjusted EBITDA margin⁽⁶⁾		14.0%		14.2%		14.5%		14.0%

(1)	The Company operates on a 52/53 week fiscal year. Fiscal year 2025 had 53 weeks with the extra operating week occurring in fiscal fourth quarter 2025.
(2)	Expenses incurred to establish accruals related to the settlements of legal matters.
(3)	Expenses incurred related to the restatement of prior periods in the 2023 Form 10-K.
(4)	Expenses related to California healthcare charges for fiscal 2020 through 2023 which do not represent fiscal 2024 Labor and related expenses.
(5)	Expenses incurred for professional fees related to non-recurring matters.
(6)	Calculated as a percentage of Total revenue, which was $400.5 million and $1,445.3 million for the fiscal quarter and fiscal year ended December 31, 2025, respectively, and $328.7 million and $1,252.6 million for the fiscal quarter and fiscal year ended December 25, 2024, respectively.

SHAKE SHACK INC.

NON-GAAP FINANCIAL MEASURES

(UNAUDITED)

Adjusted Pro Forma Net Income (Loss) and Adjusted Pro Forma Earnings (Loss) Per Fully Exchanged and Diluted Share

How These Measures Are Useful

Limitations of the Usefulness of These Measures

			Fiscal Quarter Ended				Fiscal Year Ended
(in thousands, except per share amounts)			December 31 2025⁽¹⁾		December 25 2024		December 31 2025⁽¹⁾		December 25 2024
Numerator:
	Net income attributable to Shake Shack Inc.		$	11,831	$	8,710	$	45,725	$	10,207
	Adjustments:
		Reallocation of Net income attributable to non-controlling interests from the assumed exchange of LLC Interests⁽²⁾		1,168		623		3,981		613
		Impairment charges and Shack closures⁽³⁾		1,045		1,191		2,949		29,348
		Legal settlements⁽⁴⁾		—		—		983		—
		Severance		—		—		379		—
		Restatement costs⁽⁵⁾		—		778		354		2,378
		CEO transition costs		—		38		35		679
		Employee benefit charges⁽⁶⁾		—		—		—		453
		Other⁽⁷⁾		—		8		3		3,652
		Tax impact of above adjustments⁽⁸⁾		2,543		269		3,906		(6,785	)
	Adjusted pro forma net income		$	16,587	$	11,617	$	58,315	$	40,545

Denominator:
	Weighted-average shares of Class A common stock outstanding—diluted			41,831		41,872		41,847		44,203
	Adjustments:
		Assumed exchange of LLC Interests for shares of Class A common stock⁽²⁾		2,434		2,456		2,441		—
	Adjusted pro forma fully exchanged weighted-average shares of Class A common stock outstanding—diluted			44,265		44,328		44,288		44,203

Adjusted pro forma loss per fully exchanged share—diluted			$	0.37	$	0.26	$	1.32	$	0.92

		Fiscal Quarter Ended				Fiscal Year Ended
		December 31 2025⁽¹⁾		December 25 2024		December 31 2025⁽¹⁾		December 25 2024
Earnings per share of Class A common stock—diluted		$	0.28	$	0.21	$	1.09	$	0.24
	Assumed exchange of LLC Interests for shares of Class A common stock⁽²⁾		0.01		—		0.03		—
	Non-GAAP adjustments⁽⁹⁾		0.08		0.05		0.20		0.68
Adjusted pro forma earnings per fully exchanged share—diluted		$	0.37	$	0.26	$	1.32	$	0.92

(1)	The Company operates on a 52/53 week fiscal year. Fiscal year 2025 had 53 weeks with the extra operating week occurring in fiscal fourth quarter 2025.
(2)	Assumes the exchange of all outstanding LLC Interests for shares of Class A common stock, resulting in the elimination of the non-controlling interest and recognition of the net income attributable to non-controlling interests.
(3)	Expenses incurred related to Shack closures and impairment charges during fiscal 2024 and fiscal 2025.
(4)	Expenses incurred to establish accruals related to the settlements of legal matters.
(5)	Expenses incurred related to the restatement of prior periods in the 2023 Form 10-K.
(6)	Expenses related to California healthcare charges for fiscal 2020 through 2023 which do not represent fiscal 2024 Labor and related expenses.
(7)	Expenses incurred for professional fees related to non-recurring matters.
(8)	Represents the tax effect of the aforementioned adjustments and pro forma adjustments to reflect corporate income taxes at assumed effective tax rates of 26.5% and 24.6% for the fiscal quarter and fiscal year ended December 31, 2025, respectively, and 22.3% and 20.1% for the fiscal quarter and fiscal year ended December 25, 2024, respectively. Amounts include provisions for U.S. federal income taxes, certain LLC entity-level taxes and foreign withholding taxes, assuming the highest statutory rates apportioned to each applicable state, local and foreign jurisdiction.
(9)	Represents the per share impact of non-GAAP adjustments for each period. Refer to the reconciliation of Adjusted pro forma net income above, for additional information.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260225684967/en/

Media:

Meg Davis, Shake Shack

[email protected]

Investor Relations:

Alison Sternberg, Shake Shack

Head of Investor Relations

(844) SHACK-04 (844-742-2504)

[email protected]

Get the next $SHAK alert in real time by email

Recent Analyst Ratings for

$SHAK

Date	Price Target	Rating	Analyst
3/9/2026	$118.00	Outperform	Wolfe Research
3/6/2026	$125.00	Buy	DA Davidson
1/20/2026	$125.00	Equal-Weight → Overweight	Morgan Stanley
1/6/2026	$105.00	Hold → Buy	Deutsche Bank
12/18/2025	$90.00	Underweight → Neutral	Analyst
11/14/2025		Hold → Buy	Loop Capital
10/28/2025	$95.00	Neutral	Mizuho
10/22/2025	$160.00 → $115.00	Overweight	Barclays

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$SHAK
SEC Filings

Shake Shack Inc. filed SEC Form 8-K: Leadership Update

Shake Shack Inc. filed SEC Form 8-K: Other Events

SEC Form 10-K filed by Shake Shack Inc.

$SHAK
Insider Trading

Chief Operations Officer Sentell Stephanie Ann sold $21,060 worth of shares (225 units at $93.60), decreasing direct ownership by 1% to 15,342 units (SEC Form 4)

Corporate Controller Shake Shack Inc. covered exercise/tax liability with 456 shares and was granted 1,326 shares, increasing direct ownership by 33% to 4,780 units (SEC Form 4)

Chief Executive Officer Lynch Robert was granted 26,685 shares and covered exercise/tax liability with 1,933 shares, increasing direct ownership by 51% to 72,845 units (SEC Form 4)

$SHAK
Press Releases

Shake Shack to Participate in Upcoming March Investor Conferences