Shake Shack Releases Preliminary FY25 Results, Sets 2026 Growth Path

Shake Shack Inc. SHAK released its preliminary financial results for the fourth quarter and fiscal year ended Dec. 31, 2025. The company also shared its initial fiscal 2026 guidance and reaffirmed existing long-term objectives. Following the news, the company’s shares increased 3.7% yesterday.

Preliminary FY25 Results Highlight Steady Execution

Shake Shack’s preliminary, unaudited results for fiscal 2025 point to resilient performance despite a challenging macro and persistent food inflation. Total revenues reached $1.45 billion for the year, with $400.5 million generated in the fourth quarter. The Zacks Consensus Estimate for fourth-quarter 2025 revenues is pegged at $407 million.

Same-Shack sales increased 2.3% for fiscal 2025 and 2.1% in the fourth quarter, supported by positive traffic trends even as severe weather weighed on results late in the quarter, particularly in the Northeast.

Restaurant-level profit margins remained healthy, landing in the mid-22% range for both the quarter and the full year. This reflects ongoing operational improvements, disciplined cost controls and supply-chain initiatives that helped mitigate elevated beef costs. Adjusted EBITDA is expected to be between $208 million and $212 million, while net income is projected to be $50 million to $60 million, underscoring balanced growth and improving returns.

Unit expansion was another standout. The company opened 45 company-operated Shacks and 40 licensed locations in fiscal 2025, ending the year with 373 company-operated restaurants. Management also highlighted strong demand drivers, including menu innovation, value-focused digital promotions and increased media investments that supported traffic and brand visibility.

Fiscal 2026 and Long-Term Guidance Reinforce Confidence

Looking ahead, Shake Shack’s initial fiscal 2026 guidance indicates confidence in both demand and scalability. Management expects total revenues of $1.6 billion to $1.7 billion, with licensing revenues of $59 million to $61 million. The Zacks Consensus Estimate for fiscal 2026 revenues is pegged at $1.65 billion. 
Same-Shack sales are projected to grow at a positive low-single-digit rate, while restaurant-level margins are guided to expand further to 23% to 23.5%.

The growth algorithm remains firmly unit-led. The company plans to open 55-60 company-operated Shacks and 40-45 licensed locations in 2026, supported by what management described as the largest development pipeline in its history.

In the longer term, Shake Shack reiterated its expanded total addressable market of more than 1,500 company-operated Shacks, targeting low-teens revenue and unit growth, at least 50 basis points of annual margin expansion, and low to high-teens adjusted EBITDA growth through fiscal 2027.

Overall, the preliminary results and forward guidance suggest Shake Shack is entering its next phase of profitable scale, with improving margins, disciplined capital deployment and clear visibility into long-term growth.

SHAK currently carries a Zacks Rank #4 (Sell). Shares of the company have lost 30.9% in the past six months compared with the industry’s decline of 4.4%.

Key Picks

Some better-ranked stocks from the Zacks Retail-Wholesale sector are:

Macy's M presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The company delivered a trailing four-quarter earnings surprise of 78.9%, on average. Macy's stock has gained 75.8% in the past six months. The Zacks Consensus Estimate for Macy’s fiscal 2026 sales and earnings per share (EPS) indicates a decline of 3.1% and 18.2%, respectively, from the year-ago period’s levels.

Dillard's DDS flaunts a Zacks Rank of 1 at present. The company delivered a trailing four-quarter earnings surprise of 26.5%, on average. DDS stock has rallied 54.7% in the past six months.

The Zacks Consensus Estimate for Dillard’s fiscal 2026 sales indicates growth of 1.1%, while EPS indicates a decline of 9.4% from the year-ago period’s levels.

Expedia Group, Inc. EXPE flaunts a Zacks Rank of 1 at present. The company delivered a trailing four-quarter earnings surprise of 4.5%, on average. EXPE stock has surged 58.9% in the past six months.

The Zacks Consensus Estimate for EXPE’s 2026 sales and EPS indicates growth of 6.3% and 20.9%, respectively, from the prior-year levels.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research