Shake Shack (NYSE:SHAK) Issues Earnings Results

Shake Shack (NYSE:SHAK) announced its earnings results on Thursday. The company reported $0.37 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.35 by $0.02, Briefing.com reports. The company had revenue of $400.53 million during the quarter, compared to analysts’ expectations of $402.06 million. Shake Shack had a net margin of 3.16% and a return on equity of 11.27%. The firm’s quarterly revenue was up 21.8% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.26 earnings per share.

Here are the key takeaways from Shake Shack’s conference call:

• Shake Shack reported a strong 2025 with total revenue up 15.4% to $1.45B, Adjusted EBITDA up ~20% to about $210M, Same‑Shack sales +2.3%, and restaurant‑level margin +120 bps to 22.6%.
• Operational execution drove improvements — a new labor model and performance scorecards lifted attainment to labor targets above 90%, cut wait times to under six minutes, and increased team‑member tenure ~40%, supporting margin expansion.
• Strategic supply‑chain and development progress — comprehensive RFPs, logistics gains and supplier diversification helped mitigate inflation, while disciplined design and procurement reduced average net build cost to under $2M (≈20% YoY) and enabled an enlarged 2026 pipeline (55–60 company‑operated openings).
• Near‑term risks remain — beef inflation is running in the mid‑teens, and Q1 faces a ~250 bp revenue headwind from the 53rd week plus weather impacts, which could pressure margins before planned supply‑chain savings fully materialize.

Shake Shack Trading Down 2.5%

Shake Shack stock traded down $2.50 during midday trading on Friday, reaching $96.11. The stock had a trading volume of 2,342,842 shares, compared to its average volume of 1,413,455. The stock’s 50-day simple moving average is $91.12 and its 200 day simple moving average is $92.83. Shake Shack has a twelve month low of $72.93 and a twelve month high of $144.65. The company has a debt-to-equity ratio of 0.46, a quick ratio of 1.81 and a current ratio of 1.84. The stock has a market capitalization of $4.10 billion, a PE ratio of 88.17, a price-to-earnings-growth ratio of 3.06 and a beta of 1.75.

More Shake Shack News

Here are the key news stories impacting Shake Shack this week:

• Positive Sentiment: Q4 beat and solid top‑line growth — SHA K reported $0.37 EPS (beat) and revenue +21.8% YoY, evidence demand is recovering and supporting margin expansion. Shake Shack Announces Fourth Quarter and Fiscal Year 2025 Financial Results
• Positive Sentiment: Analysts lifting targets — Wells Fargo raised its PT to $100 (Equal Weight), and Robert W. Baird boosted its PT to $108 (Neutral), signalling analyst confidence in the recovery and implying upside from current levels. Benzinga
• Positive Sentiment: Aggressive unit growth plan — Management outlined 55–60 new company‑owned Shacks plus 40–45 licensed openings for FY26, which supports future revenue and scale benefits. Shake Shack outlines 2026 growth strategy
• Neutral Sentiment: Earlier rally increases volatility/risk of near‑term profit‑taking — The stock surged after earnings, which can lead to pullbacks as traders lock in gains. Shake Shack’s Earnings Explosion Sends Shares Soaring
• Neutral Sentiment: Interim finance leadership named — Peter Herpich is interim principal financial officer; short‑term leadership changes are typically neutral but worth watching for continuity on guidance and execution. Shake Shack names interim CFO
• Negative Sentiment: Slight revenue miss and cautious Q1 revenue guide — Q4 revenue fell a hair short of consensus ($400.5M vs. $402.1M) and the Q1 revenue range ($366–370M) sits marginally below the Street, which can temper near‑term expectations. MarketBeat earnings summary
• Negative Sentiment: Local competitive setback — A reported loss of a prime site to Whataburger in one market highlights execution/real‑estate competition risk as Shack expands. Whataburger Muscles Into Prime Daikin Park Spot

Hedge Funds Weigh In On Shake Shack

Several hedge funds and other institutional investors have recently modified their holdings of SHAK. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in Shake Shack by 4.5% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 22,627 shares of the company’s stock worth $1,995,000 after purchasing an additional 976 shares in the last quarter. Jones Financial Companies Lllp increased its position in shares of Shake Shack by 4,210.3% in the first quarter. Jones Financial Companies Lllp now owns 2,500 shares of the company’s stock worth $220,000 after acquiring an additional 2,442 shares in the last quarter. United Services Automobile Association purchased a new position in shares of Shake Shack in the 1st quarter valued at $219,000. Geneos Wealth Management Inc. acquired a new position in shares of Shake Shack during the 1st quarter valued at $26,000. Finally, Northwestern Mutual Wealth Management Co. boosted its position in Shake Shack by 159.7% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 748 shares of the company’s stock worth $105,000 after purchasing an additional 460 shares during the period. 86.07% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several equities analysts have weighed in on SHAK shares. Wells Fargo & Company raised their price target on Shake Shack from $90.00 to $100.00 and gave the stock an “equal weight” rating in a research report on Friday. Piper Sandler dropped their price objective on Shake Shack from $126.00 to $102.00 and set a “neutral” rating for the company in a research report on Friday, October 31st. Zacks Research lowered shares of Shake Shack from a “hold” rating to a “strong sell” rating in a report on Thursday, January 15th. Morgan Stanley raised Shake Shack from an “equal weight” rating to an “overweight” rating and lifted their price objective for the company from $115.00 to $125.00 in a research report on Tuesday, January 20th. Finally, Loop Capital upgraded Shake Shack from a “hold” rating to a “buy” rating and increased their target price for the stock from $98.00 to $127.00 in a research report on Friday, November 14th. One analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, fourteen have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the company currently has an average rating of “Hold” and an average price target of $116.55.

Shake Shack Company Profile

Shake Shack, Inc (NYSE: SHAK) is a publicly traded hospitality company known for its modern take on the classic American roadside burger stand. The company operates a chain of quick-casual restaurants offering premium hamburgers, hot dogs, crinkle-cut fries, frozen custard, milkshakes and a curated selection of beer and wine. Shake Shack emphasizes high-quality ingredients, including 100% all-natural Angus beef with no hormones or antibiotics, and works with local suppliers where possible to maintain its commitment to fresh, responsibly sourced food.

Shake Shack traces its origins to a hot dog cart opened in New York City’s Madison Square Park in 2001 by Danny Meyer’s Union Square Hospitality Group.