Shake Shack Inc. reported fourth‑quarter 2025 revenue of $400.5 million, a 21.9% year‑over‑year increase from $328.7 million in Q4 2024. The growth was driven by a 2.1% rise in same‑Shack sales, supported by a 1.6% lift in price mix and a 0.5% increase in guest traffic, reflecting steady demand across its U.S. footprint.
The company’s earnings per share beat expectations, with an adjusted pro‑forma diluted EPS of $0.37 versus analyst estimates of $0.36. The diluted EPS attributable to Shake Shack Inc. was $0.28. The beat was largely a result of disciplined cost control and operational leverage, allowing the firm to maintain profitability despite modest revenue growth.
Same‑Shack sales grew 2.1% in Q4 2025, a modest increase compared to the 4.3% growth seen in Q4 2024. The modest pace was offset by a 22.7% restaurant‑level profit margin, up from 22.6% for the full year 2025 and matching the margin reported for Q4 2024. The margin expansion reflects effective pricing power and scale, even as commodity inflation—particularly elevated beef costs—continued to pressure input prices.
Segment revenue was $385.3 million from company‑operated Shacks and $15.2 million from licensed locations, underscoring the company’s focus on expanding its owned‑store network. In comparison, Q4 2024 revenue was $328.7 million, with same‑Shack sales growth of 4.3% and a 22.7% margin, while the full‑year 2024 results showed a 3.6% same‑Shack sales increase and a 21.4% margin.
Management reiterated its confidence in the business, noting that 45 new company‑operated Shacks opened in fiscal 2025 and that sequential same‑Shack sales growth continued through the quarter. CEO Rob Lynch highlighted the company’s ability to generate strong cash‑on‑cash returns and the effectiveness of its activity‑based labor model. VP of Financial Planning & Analysis Carrie Britton emphasized operational excellence, marketing, and culinary initiatives as key drivers of revenue growth and margin expansion. The company also cautioned that beef costs are expected to remain elevated in 2026.
Investor reaction was positive, driven primarily by the EPS beat and the margin expansion. The market viewed the results as evidence of strong execution and operational discipline, reinforcing confidence in Shake Shack’s growth strategy and unit economics.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.