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Shake Shack (SHAK) Drops 14.6% on Weak Outlook

By Angelica Ballesteros | August 01, 2025, 2:39 PM

We recently published Massive Sell-Off: 10 Stocks in a Bloodbath. Shake Shack Inc. (NYSE:SHAK) is one of the worst-performing stocks on Thursday.

Shake Shack saw its share prices drop by 14.6 percent on Thursday to close at $120.34 apiece as investors were said to have soured on its weaker-than-expected outlook for full year 2025, shunning its strong earnings performance during the second quarter of the year.

In an earnings call, Shake Shack Inc. (NYSE:SHAK) announced targeting revenues of $1.4 billion to $1.5 billion, which would translate to a growth of 11 to 19.8 percent from the $1.252 billion revenues last year.

In the second quarter of the year, Shake Shack Inc. (NYSE:SHAK) registered a 77-percent jump in attributable net income at $17.15 million from $9.67 million in the same period last year. Total revenues increased by 12.6 percent to $356 million from $316 million year-on-year.

Shake Shack (SHAK) Drops 14.6% on Weak Outlook

For the first half, attributable net income jumped by 83 percent to $21.4 million from $11.7 million, while revenues were higher by 11 percent to $677 million from $607 million.

While we acknowledge the potential of SHAK as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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