Shake Shack reveals soggy year-end sales

Shake Shack (NYSE:SHAK) stock pointed lower on Monday, after the fast food brand and franchiser revealed a sales wash-out in late 2025.

“In 4Q25, our same-Shack sales grew sequentially throughout the quarter," CEO Rob Lynch said in a trading update.

"However, the last six weeks of the quarter did not meet our expectations due to inclement weather in some of our most heavily penetrated markets like the Northeast.

"Despite these short-term challenges, we delivered positive same-Shack sales and positive traffic for the quarter."

Now, to chew over the numbers, Shake Shack said revenue amounted to $400.5 million in 4Q25 and $1.45 billion in FY25, with licensing revenue of $15.3 million in 4Q25 and $54.1 million in FY25. Same-Shack sales rose 2.1% in 4Q25 and 2.3% in FY25.

The company opened 45 new company-operated 'Shacks' in FY25, 15 in 4Q25, and 40 new licensed 'Shacks' in FY25, 17 in 4Q25.

The company updated FY25 guidance, saying restaurant-level profit margin is expected to be approximately 22.6% to 22.8% of Shack sales in 4Q25 and approximately 22.5% to 22.7% for FY25.

It expects general and administrative expenses of approximately 12.1% to 12.3% of total revenue in FY25, equity-based compensation of approximately $20 million, depreciation and amortization of approximately $106.0 million to $108 million, pre-opening costs of approximately $18 million, net income of approximately $50 million to $60 million, and earnings (adjusted EBITDA) of approximately $208 million to $212 million. The company said the adjusted pro forma tax rate for FY25 is expected to be approximately 26% to 27%.

For fiscal 2026, the company provided initial guidance, projecting total revenue of $1.6 billion to $1.7 billion, licensing revenue of $59 million to $61 million and positive low-single-digit same-Shack sales.

It forecast restaurant-level profit margin of 23% to 23.5% of Shack sales, general and administrative expenses of 12% to 13% of total revenue, equity-based compensation of approximately $28 million, depreciation and amortization of $128 million to $132 million, pre-opening costs of $25 million to $27 million, net income of $50 million to $60 million, and earnings (adjusted EBITDA) of $237 million to $245 million.

Company-operated openings are expected to be approximately 55 to 60, with licensed openings of approximately 40 to 45.

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Lynch, meanwhile, added: “Shake Shack team members have delivered strong 2025 business results despite a challenging macroeconomic environment... We continue to improve our returns on these Shacks by expanding operating margins, decreasing build costs, and most importantly, growing sales."

Shake Shack's shares in New York dropped $2.59 or 2.78% to $90.70 in early trade on Monday.

The Recap

• Shake Shack reported preliminary 4Q25 and full-year 2025 results.
• Total revenue was $400.5 million in the fourth quarter.
• Initial 2026 revenue guidance is $1.6 billion to $1.7 billion.