Shake Shack (NYSE:SHAK) Q4 2025 Earnings call February 26, 2026 08:00 AM ET Company ParticipantsAlison Sternberg - Head of Investor RelationsAndy Barish - Managing DirectorKerry Britton - VP of Financial Planning and AnalysisPeter Saleh - Managing DirectorRob Lynch - CEOSamantha Chiang - Equity Research AssociateConference Call ParticipantsAnisha Dattani - Operations Analyst Team LeadBrian Vaccaro - Managing Director and Equity Research AnalystNick Setyan - Managing Director and Equity Research AnalystRahul ...

This story was originally published on Supply Chain Dive. To receive daily news and insights, subscribe to our free daily Supply Chain Dive newsletter. Dive Brief: Southern Glazer’s Wine and Spirits opened a distribution facility in West Columbia, South Carolina, according to a Feb. 10 press release. The 412,500-square-foot facility in Lexington County aims to strengthen the distributor’s supply chain network and support suppliers in the state, per the release. The distribution center is equipped wi ...

Financial Data and Key Metrics Changes - Consolidated revenue increased 17% to over $2.1 billion in Q4 2025, marking a new record for the fourth quarter and the first quarter to exceed $2 billion [4][20] - Full year consolidated revenue rose 15% to $7.25 billion, a new annual record, with gross margin at 58.7% and operating margin expanding by 60 basis points to 25.9% [5][21] - Record operating income for Q4 was $614 million, up 19% year-over-year, and for the full year, it was nearly $1.9 billion, an 18% increase [4][6] Business Segment Data and Key Metrics Changes - Fitness segment revenue increased 33% to $2.36 billion, with operating income rising 50% year-over-year to $726 million [10] - Outdoor segment revenue grew 5% to $2.05 billion, driven by adventure watches, with operating income of $690 million [12] - Aviation segment revenue increased 13% to $987 million, with operating income rising 22% to $257 million [14] - Marine segment revenue rose 10% to $1.18 billion, with operating income of $251 million [16] - Auto OEM segment revenue increased 9% to $665 million, but operating loss was $49 million [18] Market Data and Key Metrics Changes - In Q4, the Americas region achieved strong double-digit growth of 21%, while EMEA and APAC regions grew by 14% and 8%, respectively [22] - For the full year, EMEA grew by 18%, Americas by 40%, and APAC by 12% [22] Company Strategy and Development Direction - The company focuses on market diversification and creating superior products essential to customers' lives, which has been a successful strategy since its inception [5] - The company anticipates 2026 to be another year of strong growth, expecting revenue to increase approximately 9% to $7.9 billion and operating income to exceed $2 billion for the first time [7][27] - The company will no longer emphasize individual segment growth targets, focusing instead on consolidated guidance measures [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating supply chain challenges and highlighted strong relationships with suppliers [8][9] - The company is prepared for potential impacts from memory constraints and is actively seeking efficiencies throughout its supply chain [8] - Management noted that the overall market for wearables is on a steady growth path, with Garmin gaining market share [79] Other Important Information - The company proposed an annual dividend of $4.20 per share, reflecting a 17% increase, and announced a $500 million share repurchase program [9][25] - The company is investing in a new manufacturing facility in Thailand, expected to be operational in early 2027 [25] Q&A Session Summary Question: Impact of memory costs on 2026 guidance - Management acknowledged pressure on memory costs but did not quantify the impact, emphasizing overall cost efficiency across the bill of materials [29][31] Question: Factors contributing to wearables growth - Management indicated that volume was the primary driver of growth in wearables, with minor impacts from average selling price [33][34] Question: Future of auto OEM business - Management discussed the need to achieve scale and invest in innovation, indicating a shift in R&D resources to accelerate product development [38][41] Question: Military exposure in aviation segment - Management confirmed that projects like the Black Hawk helicopter represent growth opportunities, utilizing commercial components for modernization [49][50] Question: Update on Connect Plus uptake - Management reported high conversion rates for the nutrition feature added to Connect Plus, indicating strong customer interest [51] Question: Timing of new product launches in outdoor segment - Management stated that many product launches are planned for the back half of the year, expecting stronger revenue in that period [44] Question: Ratable business growth priority - Management confirmed that while subscription-based business margins are higher, the focus remains on overall growth across all segments [95][96]

Core Insights - GXO Logistics, Inc. has announced a 10-year extension of its partnership with Greene King, reinforcing a relationship that has lasted over two decades [1] - The partnership involves over 700 GXO employees delivering food, drink, and equipment to Greene King's network of more than 2,600 pubs across the UK [1] Group 1: Partnership Details - The renewed agreement allows GXO to consolidate food and drink distribution across England, Scotland, and Wales, enhancing the flexibility and scalability of the supply chain [2] - Both companies emphasize their commitment to sustainability and operational efficiencies, aiming to optimize the supply network and unlock benefits for reinvestment in the business [2] Group 2: Operational Improvements - GXO plans to leverage its expertise in automation and technology within the food and beverage sector to drive continuous operational improvements [3]

FedEx 2026 Investor Day Summary Company Overview - **Company**: FedEx Corporation (NYSE: FDX) - **Event**: 2026 Investor Day held on February 12, 2026 - **Key Speakers**: Raj Subramaniam (CEO), Jeni Hollander (VP of Investor Relations), and other business leaders Core Industry Insights - **Industry**: Logistics and Supply Chain Management - **Market Position**: FedEx operates one of the world's most valuable industrial networks, connecting over 99% of global GDP and transporting approximately $2 trillion of goods annually, delivering over 17 million packages each business day [6][21] Key Strategic Points 1. **Vision and Mission**: FedEx aims to make supply chains smarter for everyone, focusing on enhancing customer experience, modern technology, and lower costs [4][25] 2. **Transformation Strategy**: The company is undergoing a transformation to create an integrated, intelligent industrial network that combines physical and digital capabilities [24][34] 3. **Financial Performance Goals**: FedEx expects revenue to grow at a compound annual growth rate (CAGR) of 4% from fiscal 2026 to 2029, with adjusted operating income growth of approximately 14% during the same period [33][56] Operational Highlights - **Workforce**: FedEx employs over 500,000 people globally, emphasizing a culture of safety, service, and innovation [7][10] - **Data Utilization**: The company generates and processes 2 petabytes of data daily, leveraging AI and data analytics for network planning, forecasting, and customer visibility [22][68] - **Cost Savings**: Structural changes have led to $4 billion in savings from FY 2023 through FY 2025, with an additional $2 billion expected by the end of 2027 [25][26] Market Segmentation and Growth Areas 1. **Revenue Breakdown**: Approximately 70% of revenue comes from U.S. Domestic operations, while 30% is from International markets [21][38] 2. **Target Verticals**: Focus on high-margin sectors such as healthcare, automotive, aerospace, and data centers, with a combined market opportunity of $130 billion [40][42] 3. **B2B and B2C Strategies**: Targeting $6.5 billion in incremental B2B growth, with a focus on high-value goods and specialized B2C segments [41][54] Technological Advancements - **Digital Transformation**: FedEx is modernizing its technology stack, embedding AI into operations, and simplifying processes to enhance efficiency and customer experience [62][75] - **AI Integration**: Plans to integrate AI into over 50% of core operational workflows by 2028, improving service and reducing costs [75][76] Strategic Partnerships - **InPost Investment**: FedEx is participating in a consortium to acquire InPost, a European out-of-home delivery enabler, which is expected to enhance B2C last-mile operations and improve financial performance [30][31] Conclusion - **Future Outlook**: FedEx is positioned to leverage its extensive network and technological advancements to drive growth, improve profitability, and enhance customer service, with a clear focus on high-margin verticals and operational efficiency [34][57]

Group 1 - The company has established a strategic framework aimed at achieving operational excellence in its supply chain, which has been crucial for expanding gross margins through cost-reduction initiatives [3] - In the first quarter, the company achieved a global on-time performance rate of 97.6% while increasing production capacity to support key business objectives [4] - The company is re-evaluating its sourcing strategies globally, particularly for steel cans, and is currently assessing the sourcing of its raw materials [4][5] Group 2 - The supply chain team is focused on engaging key suppliers and advancing responsible sourcing, with the first sustainability assessment among Tier 1 suppliers conducted in 2024 [5] - The company has decentralized its supply chain to offset tariffs and has strengthened global partnerships with key suppliers, leading to improved efficiencies and cost savings [6] - The company is evaluating the locations of its distribution centers to reduce delivery miles, which will involve structural changes but will not significantly impact capital expenses due to outsourcing to third-party logistics providers [8]

Core Insights - Stolt-Nielsen Limited reported solid financial results for Q4 2025, demonstrating resilience in a challenging market environment, with a net profit of $59.6 million and revenue of $680.6 million, compared to a net profit of $91.4 million and revenue of $709.4 million in Q4 2024 [1][2] - The company's full-year net profit for 2025 was $350.2 million on revenue of $2,769.0 million, down from a net profit of $394.8 million and revenue of $2,890.6 million in 2024 [1] Financial Performance - EBITDA for Q4 2025 was $186.0 million, down from $212.7 million in Q4 2024, while the full-year EBITDA was $775.5 million, at the upper end of the company's guidance [2][5] - Earnings per share in Q4 2025 decreased to $1.12 from $1.71 in Q4 2024 [5] - Stolt Tankers reported an operating profit of $54.8 million, down from $83.4 million, with average TCE revenue dropping 19% to $24,518 per day from $30,185 [4][5] Strategic Initiatives - The company is focused on enhancing its position in liquid logistics, optimizing supply chains, and creating long-term value through strategic investments [3] - In November 2025, Stolt-Nielsen acquired 100% of Suttons, adding 11,000 tanks to its fleet and expanding service offerings [3] - Discussions are ongoing regarding the potential sale of a portion of equity in Avenir LNG to support its growth in small-scale LNG bunkering [3] Market Conditions - The logistics marketplace remains complex due to unpredictable macro-economic and geopolitical developments, along with trade tariff instability [4] - Stolt Tankers experienced increased volumes from spot demand, but weaker freight rates led to a decline in TCE earnings [4] - Stolthaven Terminals maintained steady utilization despite a sluggish chemical market, although higher costs resulted in a profit decline [4]

Group 1 - Jason Bell has been promoted to EVP, chief supply chain officer at Nordstrom, effective immediately, and will oversee transportation in addition to his existing responsibilities [1] - Bell joined Nordstrom in 2021 as SVP of supply chain operations, focusing on optimizing the retailer's supply chain operations [2] - Prior to Nordstrom, Bell held significant roles in supply chain leadership, including VP of distribution planning and operations at H-E-B and VP of fulfillment operations at Target, where he managed large-scale fulfillment operations [3] Group 2 - Nordstrom has prioritized optimizing its supply chain since 2022, which included scaling back plans for a leased omnichannel center in the Pacific Northwest [4] - The company has successfully transitioned operations from a fulfillment center in San Bernardino, California, to its West Coast omnichannel center in Riverside, California [4]

Core Insights - DuPont has appointed D.G. Macpherson to its Board of Directors, effective immediately, enhancing its leadership team with his extensive experience in operational excellence and business transformation [1][2]. Group 1: Appointment Details - D.G. Macpherson's appointment is seen as a strategic move to support DuPont's growth strategy and long-term value delivery to shareholders, customers, and employees [2]. - Macpherson is currently the Chairman and CEO of W.W. Grainger, Inc., where he has been instrumental in shaping the company's global strategic and operational vision [2][3]. Group 2: Professional Background - Prior to his role at Grainger, Macpherson served as Chief Operating Officer and held various senior positions, focusing on corporate strategy and global supply chain management [3]. - He has a background in management consulting as a Partner and Managing Director at Boston Consulting Group, where he gained expertise in production systems and continuous improvement methodologies [4]. Group 3: Educational and Board Affiliations - Macpherson holds a bachelor's degree from Stanford University and an MBA from Northwestern's Kellogg School of Management [5]. - He has served on the Board of Directors for International Paper Company and is currently involved with the Griffin Museum of Science and Industry and the Civic Committee of the Commercial Club of Chicago [5].

Core Insights - The company is reducing its product development timeline to better align with rapidly changing consumer demand [1] Company Strategy - The maker of Sally Hansen nail polishes and Marc Jacobs perfumes is adapting its strategy to respond to market trends more effectively [1]