Why Shake Shack (SHAK) Stock Is Trading Up Today

What Happened?

Shares of fast-food chain Shake Shack (NYSE:SHAK) jumped 10.7% in the afternoon session after the company reported fourth-quarter results that beat profit expectations and provided a better-than-expected outlook. 

The company posted adjusted earnings of $0.37 per share, ahead of analyst forecasts. Although quarterly sales of $400.5 million slightly missed estimates, they still grew a significant 21.9% year-over-year. Investors were encouraged by same-store sales growth of 2.1% and, more significantly, by the company's strong guidance for the upcoming first quarter. Both its revenue and same-store sales forecasts for the next quarter came in ahead of Wall Street's expectations, signaling positive momentum for the business. The strong profitability and upbeat forecast appeared to outweigh the slight revenue miss, fueling investor optimism.

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What Is The Market Telling Us

Shake Shack’s shares are very volatile and have had 24 moves greater than 5% over the last year. But moves this big are rare even for Shake Shack and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 3 days ago when the stock dropped 5.3% on the news that the Trump administration's announcement of new global tariffs, reignited trade policy uncertainty. The move came swiftly after the Supreme Court ruled the previous week that the president could not use the International Emergency Economic Powers Act (IEEPA) for such duties, a decision that had initially sent markets higher. However, the administration invoked a different authority, the Trade Act of 1974, to impose a 15% global tariff for up to 150 days. The rapid reimposition of trade barriers creates significant uncertainty for companies across multiple sectors that depend on international supply chains and global trade. Investors are now weighing the potential impact of these new duties on corporate earnings and broader economic activity.

Shake Shack is up 20.5% since the beginning of the year, but at $100.57 per share, it is still trading 29.2% below its 52-week high of $142.03 from July 2025. Investors who bought $1,000 worth of Shake Shack’s shares 5 years ago would now be looking at an investment worth $848.85.

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