Shake Shack Inc. Q2 FY26 Results

Our second quarter results reflect a business that continues to execute across sales, development, and profitability despite navigating one of the most challenging cost environments we have faced in many years. While we remain focused on the work ahead, I am encouraged by the resilience of the Shake Shack model and confident in our ability to deliver on our long-term plan. For the second quarter, same-Shack sales grew 3.5%, including positive traffic of 2.0%. These results reflect our ongoing investments in culinary innovation, targeted marketing, and our digital ecosystem — all designed to drive guest acquisition, frequency, and long-term brand value. We delivered our strongest second quarter of unit growth on record, opening 16 new Company-operated Shacks, and generated second-quarter Restaurant-level profit of $92.7 million, or 23.0% of Shack Sales — a healthy result given record-high beef costs and the deliberate choice to protect our value positioning rather than fully offset inflation through pricing. Our second quarter results landed within the revised ranges we provided in our June business update, reflecting the underlying strength of the model. We remain encouraged by the momentum ahead and confident in the long-term value we are building.

Our second quarter results reflect the resilience of the Shake Shack model in one of the most challenging cost environments we have faced in many years. We delivered Total revenue growth of 17.2% year-over-year to $417.6 million, driven by the opening of new Company-operated and licensed Shacks, and 3.5% same-Shack sales growth — including four consecutive quarters of positive traffic. We delivered Restaurant-level profit of $92.7 million, or 23.0% of Shack sales. Beef inflation accelerated in the quarter and peaked in June, creating meaningful margin pressure. Rather than offsetting these costs fully through pricing, we chose to protect our value proposition for the long term. Our teams continued to optimize our labor, leverage technology to run more efficient restaurants, and pursue supply chain opportunities that capture more competitive pricing while maintaining or improving product quality. Our digital ecosystem continues to strengthen. Comparable app channel sales grew nearly 30% year-over-year, with app guests visiting more often and spending more annually. Our $2, $4, $6 digital offers continue to drive app engagement, and support frequency among existing guests. On the development side, we opened 16 new Company-operated Shacks — our strongest second quarter on record. As of the end of Q2, we have opened 33 new Company-operated Shacks, and we remain on track to open 60 to 65 this year. Our culinary pipeline remains a meaningful point of differentiation. Our barbecue platform, illustrated by the Baby Back Rib Sandwich, met our expectations and resonated strongly with guests. This product line reinforced our belief in Shake Shack's ability to lead with differentiated culinary innovation that drives excitement, traffic, and check growth. In the second half of the year, we are making The Big Shack a core menu item, launched a new West Coast inspired menu platform in July, and brought back the Dubai Chocolate Pistachio Shake, which continues to resonate. This balanced approach allows us to widen our reach while staying true to the premium ingredients and craftsmanship that define the Shake Shack brand. Project Catalyst is on track and represents our foundation for scaling efficiently while improving the guest and team member experience — spanning our point-of-sale rollout, loyalty platform development, and AI-enabled capabilities across the business. These investments are foundational to our growth strategy, decision-making, and guest connection, and represent a clear path to G&A leverage as we scale. We remain a premium brand with a proven unit economic model, positive traffic momentum, disciplined operators, and structural margin resilience. The back half carries real headwinds — tougher comparisons, continued beef inflation, and ongoing competitive intensity — but we believe we are well-positioned to navigate them. We are confident in our ability to deliver sustainable, long-term growth, and will stay focused on executing against our strategic priorities throughout the remainder of the year.