Core Insights - Shake Shack reported Q2 FY2025 GAAP revenue of $356.5 million, exceeding Wall Street's estimate of $354.1 million, with non-GAAP diluted EPS at $0.44, surpassing the consensus of $0.38 [1][2] - The company achieved a year-over-year revenue growth of 12.6%, driven by a 12.3% increase in company-operated sales and a 20.2% rise in licensing revenue [2][4] - Shake Shack's operational profits and margins improved significantly, with a 190 basis point increase in restaurant-level profit margin to 23.9% and a 24.8% rise in adjusted EBITDA [4][5] Financial Performance - Non-GAAP diluted EPS increased by 63.0% from $0.27 in Q2 FY2024 to $0.44 in Q2 FY2025 [2] - Restaurant-level profit (non-GAAP) reached $82.2 million, up 22.5% from $67.1 million in the same quarter last year [2] - System-wide sales climbed to $549.9 million, reflecting a 13.7% increase compared to the prior year [4] Business Strategy - Shake Shack focuses on premium fast-casual dining with a commitment to high-quality, responsibly sourced ingredients [3] - The company prioritizes expanding its physical footprint, enhancing operational efficiency, investing in digital channels, and innovating its menu [3] - Digital and app-based orders accounted for 38% of total sales, indicating a strong push towards digital transformation [7][8] Sales Growth and Expansion - Same-Shack sales growth was modest at 1.8%, with most revenue growth attributed to new store openings, including 13 new company-operated locations and nine licensed units [6] - The company aims for 14-16% system-wide unit growth and low single-digit same-Shack sales growth for FY2025 [10] Future Outlook - Management reiterated guidance for total revenue between $1.4 billion and $1.5 billion for FY2025, with a target restaurant-level profit margin of approximately 22.5% [10] - The company plans to continue its expansion strategy while monitoring same-Shack sales trends and cost control measures [11]

Core Insights - Shake Shack (NYSE: SHAK) has seen a significant price increase, with gains of over 30% for investors who purchased shares in the $80s or $90s [1] Company Performance - The stock price of Shake Shack has rebounded strongly, indicating a potential bottoming out in its market performance [1] Investment Opportunity - Investors who entered the market at lower price points are currently benefiting from substantial returns, highlighting a favorable investment opportunity in Shake Shack [1]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 25, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to ______ Commission file number: 001-36823 SHAKE SHACK INC. (Exact name of registrant as specified in its charter) Delaware 47-19411 ...

Tom got some committee moves. Josh, you're buying some more Shake Shack. >> Yeah.Uh they reported a great quarter. The problem is the stock's up 100% going into the print from the April low. Was literally 72 and ran to almost 150.So today it's giving back some. But when you actually look at the numbers, they were really fantastic. And Rob Lynch is doing everything that this company brought him in to do.Um earnings were uh uh 44 cents per share um which beat the analyst consensus. revenue was 356.5% million ...

Shake Shack (SHAK) reported $356.47 million in revenue for the quarter ended June 2025, representing a year- over-year increase of 12.6%. EPS of $0.44 for the same period compares to $0.27 a year ago. View all Key Company Metrics for Shake Shack here>>> Shares of Shake Shack have returned -0.3% over the past month versus the Zacks S&P 500 composite's +2.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Same-Shack sal ...

All right, let's get to Jim for stop trading. >> Trying to think keep things balanced here again. The consumer weaker, the enterprise stronger.Uh Shake Shack, which is a marvelous company, Rob Lynch, terrific operator, the stock is down 23 points. Now, why is that. One single line.Beef prices now up low teens. The herd is wrong. You're seeing anyone who's connecting the beef industry really struggling.It's worth it to point out there is a price point that people won't pay for beef. And it looks like the Sha ...

Core Insights - Shake Shack (SHAK) reported quarterly earnings of $0.44 per share, exceeding the Zacks Consensus Estimate of $0.37 per share, and showing an increase from $0.27 per share a year ago, resulting in an earnings surprise of +18.92% [1] - The company achieved revenues of $356.47 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.75% and up from $316.5 million year-over-year [2] - Shake Shack's stock has increased approximately 8.6% since the beginning of the year, outperforming the S&P 500's gain of 8.2% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.36 on revenues of $364.32 million, and for the current fiscal year, it is $1.36 on revenues of $1.45 billion [7] - The estimate revisions trend for Shake Shack was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Retail - Restaurants industry, to which Shake Shack belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - Total revenue for Q2 was $356.5 million, exceeding guidance, with system-wide sales growing 13.7% year-over-year to $549.9 million [32] - Adjusted EBITDA grew by 24.8% year-over-year to $58.9 million, representing 16.5% of total revenue, marking the highest adjusted EBITDA level on record [39] - Net income attributable to Shake Shack Inc. was $17.1 million or $0.41 per diluted share, with adjusted pro forma net income at $19.5 million or $0.44 per fully exchanged and diluted share [40] Business Line Data and Key Metrics Changes - In the licensed business, revenue grew by 20.2% year-over-year to $13.3 million, with sales up approximately 16% to $206.7 million [32] - Company-operated Shack sales increased by 12.4% year-over-year to $343.2 million, with 13 new Shack openings [32] - Average weekly sales were $78,000, with 1.8% same Shack sales growth [33] Market Data and Key Metrics Changes - Traffic was down 70 basis points, but trends improved each month of the quarter, with positive traffic exiting the quarter and into July [33] - Same Shack sales growth was 1.8% in Q2, improving to 3.2% in July due to culinary innovation and marketing efforts [17][33] Company Strategy and Development Direction - The company focuses on three strategic priorities: driving same Shack sales, expanding globally, and improving profitability [10] - Shake Shack is committed to a culture of leadership and operational excellence, investing in team member development and kitchen innovations [12][14] - The company plans to open 45 to 50 company-operated Shacks in 2025, marking the largest class in company history [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in raising adjusted EBITDA guidance for the full year, despite ongoing industry challenges [9] - The company is optimistic about its culinary innovation pipeline and marketing strategies to drive traffic and sales growth [66][70] - Management highlighted the importance of operational improvements and supply chain optimizations to mitigate inflationary pressures [78] Other Important Information - Shake Shack raised over $100,000 to support communities affected by recent floods [8] - The company is on track to reduce build costs by at least 10% this year, despite global supply chain uncertainties [26] Q&A Session Summary Question: Can you elaborate on the margin front and labor productivity improvements? - Management noted significant improvements in labor productivity and operational efficiencies, contributing to expanded restaurant level margins by 190 basis points year-over-year [55][56] Question: What are the new learnings from the kitchen innovation lab? - Management shared that new kitchen equipment has improved throughput and service times, enhancing operational efficiency [59][60] Question: How will the new culinary calendar impact advertising and marketing? - The company plans to create awareness through paid media investments, focusing on culinary innovations and limited-time offers [66][67] Question: What has changed in the outlook that allowed for increased EBITDA guidance? - Management indicated strong performance in restaurant margins and confidence in continued strength, leading to an increase in EBITDA guidance [76] Question: How will marketing and culinary innovations be margin accretive? - The company expects new premium-priced menu items to drive sales and improve margins, alongside operational productivity [78][80]

Financial Data and Key Metrics Changes - Total revenue for Q2 was $356.5 million, exceeding guidance, with system-wide sales growing 13.7% year-over-year to $549.9 million [30] - Adjusted EBITDA grew by 24.8% year-over-year to $58.9 million, representing 16.5% of total revenue, marking the highest adjusted EBITDA level on record [36] - Net income attributable to Shake Shack Inc. was $17.1 million or $0.41 per diluted share, with adjusted pro forma net income at $19.5 million or $0.44 per fully exchanged and diluted share [37] Business Line Data and Key Metrics Changes - Company-operated Shack sales grew 12.4% year-over-year to $343.2 million, with 13 new Shack openings [30] - The license business saw revenue growth of 20.2% year-over-year to $13.3 million, with sales up approximately 16% to $206.7 million [30] - Restaurant level profit reached $82.2 million, or 23.9% of Shack sales, a 190 basis point improvement year-over-year [33] Market Data and Key Metrics Changes - Average weekly sales were $78,000, with 1.8% same Shack sales growth, improving to 3.2% in July [31][16] - Traffic was down 70 basis points, but trends improved each month of the quarter, with positive traffic exiting the quarter [31] - Culinary innovation contributed approximately one percentage point of growth to same Shack sales, driven by summer barbecue and merchandising improvements [32] Company Strategy and Development Direction - The company is focused on three strategic priorities: driving same Shack sales, expanding globally, and improving profitability [8] - Plans to open 45 to 50 company-operated Shacks in 2025, marking the largest class in company history [22] - The introduction of a culinary calendar with four main platforms per year aims to enhance marketing and product offerings [61] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in raising adjusted EBITDA guidance for the full year, despite ongoing industry headwinds [7] - The company is optimistic about its ability to navigate inflationary pressures and maintain strong cash flow [38] - Future growth is expected to be supported by a robust pipeline of culinary innovations and increased marketing investments [42] Other Important Information - The company raised over $100,000 to support communities affected by floods in Texas and North Carolina [6] - Shake Shack is now served on Delta flights across 13 domestic airports, receiving positive guest feedback [25] - The company is on track to reduce build costs by at least 10% this year despite global supply chain uncertainties [24] Q&A Session Summary Question: Can you elaborate on the incremental efficiencies seen in labor productivity? - Management highlighted improvements in recruiting, retention, and speed of service, attributing success to a new labor model and strong leadership [49][51] Question: What are the implications of the new culinary calendar on advertising and marketing? - The company plans to create awareness at the top of the funnel for limited-time offers and has built an 18-month culinary innovation calendar [61][65] Question: How will the marketing and culinary innovations be margin accretive? - Management indicated that new premium-priced items and operational efficiencies will help mitigate commodity inflation and drive margin growth [77][79] Question: How is the company managing the balance between product innovation and operational efficiency? - The company conducts operational tests on new menu items to ensure they do not disrupt productivity and service quality [104]

Financial Performance Summary [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) Shake Shack reported strong Q2 2025 growth, with total revenue up **12.6%** to **$356.5 million** and net income rising to **$18.5 million** Second Quarter 2025 Financial Highlights (in millions USD, except EPS and %) | Financial Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $356.5 | $316.5 (implied) | +12.6% | | System-wide Sales | $549.9 | $483.6 (implied) | +13.7% | | Same-Shack Sales | - | - | +1.8% | | Operating Income | $22.4 | $10.8 | +107.4% | | Restaurant-level Profit | $82.2 | $67.1 (from recon) | +22.5% | | Net Income | $18.5 | $10.4 | +77.9% | | Adjusted EBITDA | $58.9 | $47.2 | +24.8% | | Diluted EPS | $0.41 | $0.23 | +78.3% | | Adj. Pro Forma Diluted EPS | $0.44 | $0.27 | +63.0% | - The company expanded its presence by opening **13** new Company-operated Shacks, including two with drive-thrus, and **9** new licensed Shacks during the quarter[5](index=5&type=chunk) Consolidated Financial Statements [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets grew to **$1.78 billion** as of June 25, 2025, primarily due to property and equipment, with total liabilities at **$1.26 billion** and total equity at **$519.1 million** Condensed Consolidated Balance Sheets (in thousands USD) | Balance Sheet Item | June 25, 2025 | December 25, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $336,804 | $320,714 | | Total current assets | $390,843 | $368,216 | | **Total Assets** | **$1,775,033** | **$1,696,971** | | Total current liabilities | $204,050 | $187,313 | | **Total Liabilities** | **$1,255,969** | **$1,203,345** | | **Total Equity** | **$519,064** | **$493,626** | [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Total revenue for Q2 2025 increased to **$356.5 million**, with income from operations more than doubling to **$22.4 million** and net income attributable to Shake Shack Inc. reaching **$17.1 million** Condensed Consolidated Statements of Income (Q2, in thousands USD) | Income Statement | 2025 | 2024 | | :--- | :--- | :--- | | Shack Sales | $343,224 | $305,480 | | Licensing Revenue | $13,242 | $11,016 | | **Total Revenue** | **$356,466** | **$316,496** | | Income from Operations | $22,374 | $10,782 | | Net Income | $18,483 | $10,382 | | Net Income Attributable to Shake Shack Inc. | $17,148 | $9,668 | | Diluted EPS | $0.41 | $0.23 | [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities for the first 26 weeks of 2025 was **$96.2 million**, with **$67.4 million** used in investing and **$12.7 million** in financing, leading to a **$16.1 million** cash increase Condensed Consolidated Statements of Cash Flows (26 Weeks Ended, in thousands USD) | Cash Flow | June 25, 2025 | June 26, 2024 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $96,220 | $84,210 | | Net Cash (Used in) Provided by Investing Activities | ($67,438) | $428 | | Net Cash Used in Financing Activities | ($12,689) | ($7,452) | | **Increase in Cash and Cash Equivalents** | **$16,090** | **$77,185** | Non-GAAP Financial Measures and Reconciliations [Restaurant-Level Profit](index=6&type=section&id=Restaurant-Level%20Profit) Restaurant-level profit increased to **$82.2 million** in Q2 2025, with the margin improving to **23.9%** of Shack sales, indicating enhanced individual restaurant profitability - Restaurant-level profit is a non-GAAP measure defined as Shack sales less Shack-level operating expenses (Food and paper, Labor, Other operating, and Occupancy expenses) used to evaluate the performance and profitability of its Shacks[22](index=22&type=chunk)[23](index=23&type=chunk) Restaurant-Level Profit (Q2, in thousands USD) | Restaurant-Level Profit | 2025 | 2024 | | :--- | :--- | :--- | | Income from operations | $22,374 | $10,782 | | **Restaurant-level profit** | **$82,184** | **$67,079** | | Shack sales | $343,224 | $305,480 | | **Restaurant-level profit margin** | **23.9%** | **22.0%** | [EBITDA and Adjusted EBITDA](index=9&type=section&id=EBITDA%20and%20Adjusted%20EBITDA) Adjusted EBITDA for Q2 2025 rose to **$58.9 million**, a **24.8%** increase, with the margin expanding to **16.5%**, reflecting improved operating leverage and profitability - Adjusted EBITDA is a non-GAAP measure that excludes items like equity-based compensation, impairments, and other non-recurring costs from EBITDA to facilitate comparisons of historical performance[29](index=29&type=chunk)[30](index=30&type=chunk) Adjusted EBITDA Reconciliation (Q2, in thousands USD) | Adjusted EBITDA Reconciliation | 2025 | 2024 | | :--- | :--- | :--- | | Net income | $18,483 | $10,382 | | EBITDA | $51,721 | $39,446 | | **Adjusted EBITDA** | **$58,900** | **$47,209** | | **Adjusted EBITDA margin** | **16.5%** | **14.9%** | [Adjusted Pro Forma Net Income](index=11&type=section&id=Adjusted%20Pro%20Forma%20Net%20Income) Adjusted pro forma net income for Q2 2025 was **$19.5 million**, or **$0.44** per diluted share, highlighting strong underlying earnings growth after adjustments - Adjusted pro forma net income is a non-GAAP measure assuming full exchange of LLC interests for Class A common stock, adjusted for non-recurring items to evaluate performance over time and against competitors[37](index=37&type=chunk)[38](index=38&type=chunk) Adjusted Pro Forma Net Income (Q2, in thousands USD) | Adjusted Pro Forma Net Income | 2025 | 2024 | | :--- | :--- | :--- | | Net income attributable to Shake Shack Inc. | $17,148 | $9,668 | | **Adjusted pro forma net income** | **$19,476** | **$12,146** | | **Adjusted pro forma EPS — diluted** | **$0.44** | **$0.27** | Company Overview and Definitions [About Shake Shack](index=2&type=section&id=About%20Shake%20Shack) Shake Shack is a global brand known for its high-quality American classic menu, expanding to over **600** system-wide locations since its 2004 inception - Shake Shack's menu features made-to-order Angus beef burgers, crispy chicken, hand-spun milkshakes, and house-made lemonades[6](index=6&type=chunk) - The company has grown to over **600** locations system-wide, with a presence in **34** U.S. States and international markets such as London, Hong Kong, Shanghai, and Mexico City[6](index=6&type=chunk) [Key Definitions](index=2&type=section&id=Key%20Definitions) This section defines key operating and financial metrics, including Shack sales, System-wide sales, and Same-Shack sales, crucial for understanding company performance - **Shack sales:** Aggregate sales of food, beverages, and merchandise at Company-operated Shacks, excluding licensed locations[8](index=8&type=chunk) - **System-wide sales:** An operating measure consisting of sales from both Company-operated and licensed Shacks[9](index=9&type=chunk) - **Same-Shack sales:** Represents sales for Company-operated Shacks that have been open for **24** full fiscal months or longer[10](index=10&type=chunk)