Shake Shack (SHAK) investor relations material

Executive summary

• Achieved 17.2% year-over-year revenue growth in Q2 2026, reaching $417.6 million, driven by new company-operated and licensed locations, and 3.5% same-store sales growth.

• System-wide sales increased 13.8% for the quarter, with digital sales up 34.3% and app channel sales up nearly 30% year-over-year.

• Maintained positive traffic growth for the fourth consecutive quarter and 22nd straight quarter of positive comparable sales.

• Opened 16 new company-operated and 11 new licensed locations during the quarter, totaling 27 new openings.

• Navigated record-high beef prices and elevated distribution costs, choosing to preserve value positioning over aggressive price increases.

Financial highlights

• Q2 total revenue: $417.6 million, up 17.2% year-over-year; company-operated Shack sales: $403.4 million; licensing revenue: $14.2 million.

• Restaurant-level profit: $92.7 million (23% of Shack sales); margins declined 90 bps year-over-year due to higher food and paper costs.

• Adjusted EBITDA: $61.2 million (14.7% of revenue), up 3.9% year-over-year.

• Net income: $15.7 million, down 8.6% year-over-year; diluted EPS was $0.37.

• Adjusted pro forma net income was $18.9 million, or $0.43 per fully exchanged and diluted share.

Outlook and guidance

• Annual guidance maintained; moving away from quarterly guidance to focus on long-term value.

• Expect tougher comparisons and continued beef inflation in the second half, with adjusted EBITDA and net income at the low end of guidance ranges.

• On track for 60-65 new company-operated and 40-45 new licensed Shacks in 2026.

• Loyalty platform launch remains scheduled for 2026, with incremental impact expected in future years.

• Guidance remains cautious due to macroeconomic and geopolitical uncertainties.