Shake Shack Inc. (NYSE:SHAK) reported third-quarter adjusted earnings above analysts’ expectations on Thursday, although revenue came in slightly below forecasts. The restaurant operator recorded a 15.2% year-over-year increase in revenue, supported by sales from company-operated restaurants and licensing operations.
Adjusted earnings reached $0.40 per share, exceeding the analyst consensus estimate of $0.34. Revenue totaled $423.3 million, compared with expectations of $426.38 million.
Shake Shack shares rose 1.76% in premarket trading following the announcement.
The company also reported growth in comparable-restaurant sales, higher operating income and additional restaurant openings during the quarter.
Shake Shack generated total revenue of $423.3 million during the third quarter, representing a 15.2% increase from the corresponding period in 2025.
The result was approximately $3.1 million below the analyst consensus estimate of $426.38 million.
Revenue from company-operated restaurants, referred to as Shack sales, reached $408.0 million.
Licensing revenue contributed an additional $15.3 million.
Adjusted earnings per share totaled $0.40, exceeding analysts’ expectations of $0.34 by $0.06.
The results reflected higher overall revenue and adjusted profitability, although total sales were slightly below market forecasts.
Shake Shack reported a 2.5% increase in Same-Shack sales compared with the third quarter of the previous year.
Same-Shack sales measure revenue performance at comparable existing restaurants, providing an indication of sales trends separate from the contribution of newly opened locations.
The increase accompanied the company’s 15.2% growth in consolidated revenue.
System-wide sales, which include both company-operated and licensed restaurants, increased 12.8% year over year to $644.8 million.
The system-wide figure reflects sales generated across the broader Shake Shack network, rather than only revenue recognized directly by the company.
Shake Shack reported restaurant-level profit of $91.7 million during the quarter.
The figure represented a restaurant-level profit margin of 22.5% of Shack sales.
Restaurant-level profit measures profitability at company-operated locations before certain corporate and other expenses.
Operating income increased to $21.5 million, compared with $18.5 million in the corresponding quarter of 2025.
The year-over-year increase in operating income was approximately 16.2%.
These results accompanied higher restaurant sales and the continued expansion of the company’s operating network.
Net income attributable to Shake Shack reached $16.5 million during the third quarter, compared with $12.5 million in the same period last year.
Diluted earnings per share increased to $0.39 from the prior-year result implied by the reported net income figures, although the company did not provide the comparable diluted EPS amount in the supplied announcement.
Adjusted EBITDA increased 16.0% year over year to $62.8 million.
The company reported adjusted earnings per share of $0.40, compared with the analyst consensus of $0.34.
The increase in net income and adjusted EBITDA reflected higher profitability alongside the company’s revenue growth.
Shake Shack continued expanding its restaurant network during the third quarter.
The company opened 21 new company-operated locations and 16 licensed restaurants, bringing total quarterly openings to 37.
Company-operated restaurants generate revenue directly for Shake Shack, while licensed locations contribute through the company’s licensing arrangements.
The new openings expanded the chain’s presence across its operating markets.
The company did not disclose the individual locations of the new restaurants or provide further details about their initial sales performance in the supplied announcement.
Following its recent expansion, Shake Shack operates more than 750 restaurants worldwide.
Its network includes more than 480 locations across 36 U.S. states and the District of Columbia.
The company also operates nearly 270 international locations in major cities around the world.
The total includes both company-operated and licensed restaurants.
The international network represents a substantial part of Shake Shack’s overall restaurant footprint, while the United States remains its largest market by location count.
The company’s quarterly openings contributed to the continued development of its domestic and international operations.
In its shareholder letter, Shake Shack outlined the principles underlying its restaurant operations and brand strategy.
“Shake Shack’s purpose is to Stand For Something Good, from its premium ingredients and team member development to its inspiring designs and deep community investment,” the company stated.
The statement highlighted the company’s focus on ingredients, employee development, restaurant design and community-related activities.
The quarterly results also included additional restaurant openings and higher sales across the broader network.
Shake Shack reported third-quarter revenue growth of 15.2% to $423.3 million, while adjusted earnings of $0.40 per share exceeded analysts’ expectations.
Same-Shack sales increased 2.5%, and system-wide sales rose 12.8% to $644.8 million.
Operating income reached $21.5 million, while net income attributable to the company increased to $16.5 million. Adjusted EBITDA grew 16.0% to $62.8 million.
Shake Shack opened 37 restaurants during the quarter, bringing its global network to more than 750 locations.
The announcement did not include updated full-year financial guidance.
Investors will continue to monitor comparable-restaurant sales, restaurant-level profitability and the contribution of new locations to the company’s financial performance.
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