10-Q · August 5, 2026
Shake Shack delivered Q2 revenue of $417.618 million, up 17.2% year over year, supported by 3.5% same-Shack sales growth, 27 net system openings and a 34.3% increase in digital sales. Sequential earnings and operating…
Earnings analysis · 10-Q
SHAK earnings analysis
Filed November 5, 2026 · Our reading of the company's report
The latest report
Shake Shack delivered strong top-line and earnings growth, with revenue up 15.2% year over year to $423.273 million and diluted EPS increasing to $0.39 from $0.30. However, restaurant-level margin declined to 22.5%,…
Read full summary
Shake Shack delivered strong top-line and earnings growth, with revenue up 15.2% year over year to $423.273 million and diluted EPS increasing to $0.39 from $0.30. However, restaurant-level margin declined to 22.5%, operating cash flow fell to $136.032 million year to date, and investment cash usage rose to $162.405 million as the company accelerated unit development. Liquidity was solid at $319.004 million of cash, but the filing provided no quantitative forward revenue or EPS guidance.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.39
- Operating margin
- 5.1%
What stood out
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Revenue and operating income increased
Total revenue increased 15.2% year over year to $423.273 million, while income from operations rose to $21.482 million from $18.548 million. Operating margin was 5.1% versus 5.0% in the prior-year quarter.
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EPS and net income improved
Diluted EPS was $0.39 versus $0.30 in the prior-year quarter, and net income attributable to Shake Shack Inc. increased to $16.486 million from $12.501 million.
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Company-operated growth remained strong
Company-operated Shack sales rose 15.6% to $408.026 million, driven by $47.4 million from 69 new Company-operated Shacks and a 2.5% increase in same-Shack sales.
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Positive traffic and unit expansion
Same-Shack sales increased 2.5%, supported by a 1.7% price-mix benefit and 0.8% guest-traffic growth. System-wide sales increased 12.8% to $644.8 million, and the system ended the quarter with 738 Shacks.
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Adjusted EBITDA margin expanded
Adjusted EBITDA increased to $62.794 million from $54.141 million, while adjusted EBITDA margin improved to 14.8% from 14.7% of revenue.
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Liquidity remains substantial
Cash and cash equivalents were $319.004 million at September 30, 2026. The company reported $136.032 million of operating cash flow for the first 39 weeks and said it expects liquidity to cover requirements for at least the next 12 months.
What to watch
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Restaurant-level margin compressed
Restaurant-level profit margin declined to 22.5% from 22.8% despite revenue growth. Other operating expenses increased 22.4% to $65.828 million, primarily due to higher delivery commissions and facilities costs.
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Operating cash flow weakened
Operating cash flow declined to $136.032 million from $159.219 million in the comparable 39-week period, with management citing a $42.5 million working-capital impact.
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Expansion is consuming more cash
Net cash used in investing activities increased to $162.405 million from $106.697 million, driven by a $55.7 million increase in capital expenditures related to the larger development pipeline.
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Development costs are rising
Pre-opening costs increased 50.9% year over year to $6.978 million in the quarter and 60.1% to $20.486 million for the first 39 weeks, reflecting the larger development pipeline and more Shacks under construction.
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Tax Receivable obligations
The company disclosed $245.4 million of Tax Receivable Agreement obligations as of September 30, 2026, which may reduce future cash available for operations and investment.
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No new risk-factor changes
The 10-Q states there were no material changes to the risk factors in the 2025 Form 10-K; consequently, 0 new material risk-factor changes were identified in this filing.
Management's outlook
No quantitative revenue or EPS guidance was provided in the 10-Q. Management stated that existing cash, cash from operations and available liquidity are expected to fund operating and finance leases, capital expenditures, Tax Receivable Agreement obligations and working capital needs for at least the next 12 months.
Earlier filings 4
10-Q · May 7, 2026
Shake Shack experienced a revenue decline in Q1 2026, reporting $366.7 million, below analyst expectations of $372.1 million. The company also reported a net loss of $0.29 per share, significantly missing the…
10-K · February 26, 2026
Shake Shack’s 2025 10-K emphasizes scaling Company-operated and licensed Shacks (373 Company-operated; 286 licensed; 659 system-wide) while investing in digital, kiosk and multi-format operations. The Company opened 80…
10-Q · July 31, 2025
Shake Shack reported quarterly revenue of $356,466,000 (Q2 — thirteen weeks ended June 25, 2025), up from $316,496,000 year-over-year, with operating income rising to $22,374,000 (operating margin ~6.3%). Diluted EPS…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.