Shake Shack Reports Strong Q4 Sales Growth Amid Cost Pressures
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy SHAK?
Source: seekingalpha
- Significant Sales Growth: Shake Shack reported Q4 sales of $400.5 million, reflecting a 21.9% year-over-year increase, although slightly below the $402 million estimate, demonstrating resilience amid rising beef costs and macroeconomic challenges.
- Consistent Positive Performance: The company achieved its 20th consecutive quarter of positive same-Shack sales growth at 2.1%, matching Wall Street expectations, indicating stable market demand and sustained brand appeal.
- Improved Profitability: Despite pressures from rising paper and beef prices, Shake Shack's earnings per share reached $0.37, a 42% increase year-over-year and 2 cents above estimates, showcasing effective cost control measures.
- Optimistic Future Outlook: For 2026, net income is projected between $50 million and $60 million, with adjusted EBITDA expected to range from $237 million to $245 million, reflecting the company's confidence in future growth despite ongoing beef price pressures.
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Analyst Views on SHAK
Wall Street analysts forecast SHAK stock price to rise
19 Analyst Rating
8 Buy
10 Hold
1 Sell
Moderate Buy
Current: 92.130
Low
85.00
Averages
110.29
High
150.00
Current: 92.130
Low
85.00
Averages
110.29
High
150.00
About SHAK
Shake Shack Inc. is engaged in serving an American menu of Angus beef burgers, crispy chicken, hand-spun milkshakes, house-made lemonades, beer, wine, and more. The Company’s menu focuses on food and beverages, carefully crafted from a range of classic American foods. Its burger categories include ShackBurger, SmokeShack, Shroom Burger (a vegetarian burger), Shack Stack, Avocado Bacon Burger and Hamburger. Its chicken products include Chicken Shack and Chicken Bites. It also offers wines, including Shack Red, Shack White, and Shack Rose. In addition, it serves Abita Root Beer, Shack-made lemonade, organic fresh brewed iced tea, Fifty/Fifty, Honest Kids organic apple juice and Shack2O bottled still and sparkling waters. The Company operates in approximately 570 locations system-wide, including over 370 in 34 U.S. States and the District of Columbia, and over 200 international locations across London, Hong Kong, Shanghai, Singapore, Mexico City, Istanbul, Dubai, Tokyo, Seoul and more.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Shake Shack to Announce Q4 Earnings on February 26
- Earnings Announcement Date: Shake Shack is set to release its Q4 earnings on February 26 before market open, with consensus EPS estimate at $0.35, reflecting a 34.6% year-over-year increase, which could positively impact stock performance given the strong earnings outlook.
- Revenue Expectations: Analysts forecast Q4 revenue to reach $401.98 million, representing a 22.3% year-over-year growth, indicating robust performance in the recovering restaurant sector, which may bolster investor confidence.
- Historical Performance Review: Over the past two years, Shake Shack has beaten EPS estimates 88% of the time and revenue estimates 63% of the time, suggesting a strong track record that could attract investor interest ahead of the earnings report.
- Estimate Revision Trends: In the last three months, Shake Shack's EPS estimates saw one upward revision and 17 downward revisions, while revenue estimates experienced no upward revisions and 17 downward revisions, indicating cautious market sentiment regarding the company's future performance, which may affect short-term stock price movements.
See More
Shake Shack Reports Strong Q4 Sales Growth Amid Cost Pressures
- Significant Sales Growth: Shake Shack reported Q4 sales of $400.5 million, reflecting a 21.9% year-over-year increase, although slightly below the $402 million estimate, demonstrating resilience amid rising beef costs and macroeconomic challenges.
- Consistent Positive Performance: The company achieved its 20th consecutive quarter of positive same-Shack sales growth at 2.1%, matching Wall Street expectations, indicating stable market demand and sustained brand appeal.
- Improved Profitability: Despite pressures from rising paper and beef prices, Shake Shack's earnings per share reached $0.37, a 42% increase year-over-year and 2 cents above estimates, showcasing effective cost control measures.
- Optimistic Future Outlook: For 2026, net income is projected between $50 million and $60 million, with adjusted EBITDA expected to range from $237 million to $245 million, reflecting the company's confidence in future growth despite ongoing beef price pressures.
See More
Shake Shack (SHAK) Q4 2025 Earnings Transcript
See More
Mixed Earnings Reports Drive Stock Movements
- Smucker Earnings Beat: J.M. Smucker reported third-quarter earnings of $2.38 per share, exceeding the $2.27 expected by analysts, with revenue of $2.34 billion, resulting in a 7% stock price increase, indicating strong performance in the food sector.
- Nutanix Partnership Investment: Nutanix shares surged 19% following a multi-year partnership with AMD, which will invest $150 million in Nutanix to jointly develop an AI infrastructure platform, enhancing competitive positioning in the market.
- IonQ Optimistic Sales Projections: IonQ's stock jumped 12% after projecting first-quarter revenues between $48 million and $51 million, surpassing analysts' expectations of $36 million, showcasing strong growth potential in the quantum computing sector.
- Trade Desk Earnings Miss: Trade Desk's stock plummeted 16% as it forecasted first-quarter adjusted EBITDA of approximately $195 million, significantly below the $223 million expected by analysts, reflecting challenges in the advertising technology industry.
See More
Shake Shack Q4 Earnings Beat Expectations
- Earnings Beat: Shake Shack reported a Q4 Non-GAAP EPS of $0.37, exceeding expectations by $0.02, which reflects the company's stable profitability and may bolster investor confidence.
- Revenue Miss: The company generated revenue of $400.5 million, a 21.8% year-over-year increase, but fell short of market expectations by $1.48 million, indicating sales challenges in a competitive landscape.
- Strong System Sales: System-wide sales reached $618.0 million, up 23.4% year-over-year, demonstrating Shake Shack's growing brand appeal and customer base, which enhances its future growth potential.
- Accelerated Expansion: The company opened 15 new company-operated Shacks and 17 licensed Shacks in the quarter, indicating a proactive expansion strategy aimed at increasing market share and brand influence.
See More
Shake Shack Q4 Earnings Preview
- Earnings Release Date: Shake Shack is set to release its fourth-quarter earnings before the market opens on February 26, with analysts projecting earnings of $0.35 per share, a notable increase from $0.26 per share in the same period last year, indicating improved profitability.
- Revenue Expectations: According to Benzinga Pro, Shake Shack's quarterly revenue is expected to reach $401.98 million, up from $328.68 million last year, showcasing the company's strong performance and growth potential in the market.
- Executive Appointment: On January 20, Shake Shack appointed Jim Taylor as Chief Commercial Officer, a move aimed at strengthening the company's commercial strategy and market expansion capabilities, further driving performance growth.
- Stock Price Movement: Shake Shack's shares rose 3.1% to close at $92.13 on Wednesday, reflecting market optimism regarding the upcoming earnings report and the company's future prospects.
See More
Shake Shack to Announce Q4 Earnings on February 26
- Earnings Announcement Date: Shake Shack is set to release its Q4 earnings on February 26 before market open, with consensus EPS estimate at $0.35, reflecting a 34.6% year-over-year increase, which could positively impact stock performance given the strong earnings outlook.
- Revenue Expectations: Analysts forecast Q4 revenue to reach $401.98 million, representing a 22.3% year-over-year growth, indicating robust performance in the recovering restaurant sector, which may bolster investor confidence.
- Historical Performance Review: Over the past two years, Shake Shack has beaten EPS estimates 88% of the time and revenue estimates 63% of the time, suggesting a strong track record that could attract investor interest ahead of the earnings report.
- Estimate Revision Trends: In the last three months, Shake Shack's EPS estimates saw one upward revision and 17 downward revisions, while revenue estimates experienced no upward revisions and 17 downward revisions, indicating cautious market sentiment regarding the company's future performance, which may affect short-term stock price movements.
See More
Shake Shack Reports Strong Q4 Sales Growth Amid Cost Pressures
- Significant Sales Growth: Shake Shack reported Q4 sales of $400.5 million, reflecting a 21.9% year-over-year increase, although slightly below the $402 million estimate, demonstrating resilience amid rising beef costs and macroeconomic challenges.
- Consistent Positive Performance: The company achieved its 20th consecutive quarter of positive same-Shack sales growth at 2.1%, matching Wall Street expectations, indicating stable market demand and sustained brand appeal.
- Improved Profitability: Despite pressures from rising paper and beef prices, Shake Shack's earnings per share reached $0.37, a 42% increase year-over-year and 2 cents above estimates, showcasing effective cost control measures.
- Optimistic Future Outlook: For 2026, net income is projected between $50 million and $60 million, with adjusted EBITDA expected to range from $237 million to $245 million, reflecting the company's confidence in future growth despite ongoing beef price pressures.
See More
Shake Shack (SHAK) Q4 2025 Earnings Transcript
See More
Mixed Earnings Reports Drive Stock Movements
- Smucker Earnings Beat: J.M. Smucker reported third-quarter earnings of $2.38 per share, exceeding the $2.27 expected by analysts, with revenue of $2.34 billion, resulting in a 7% stock price increase, indicating strong performance in the food sector.
- Nutanix Partnership Investment: Nutanix shares surged 19% following a multi-year partnership with AMD, which will invest $150 million in Nutanix to jointly develop an AI infrastructure platform, enhancing competitive positioning in the market.
- IonQ Optimistic Sales Projections: IonQ's stock jumped 12% after projecting first-quarter revenues between $48 million and $51 million, surpassing analysts' expectations of $36 million, showcasing strong growth potential in the quantum computing sector.
- Trade Desk Earnings Miss: Trade Desk's stock plummeted 16% as it forecasted first-quarter adjusted EBITDA of approximately $195 million, significantly below the $223 million expected by analysts, reflecting challenges in the advertising technology industry.
See More
Shake Shack Q4 Earnings Beat Expectations
- Earnings Beat: Shake Shack reported a Q4 Non-GAAP EPS of $0.37, exceeding expectations by $0.02, which reflects the company's stable profitability and may bolster investor confidence.
- Revenue Miss: The company generated revenue of $400.5 million, a 21.8% year-over-year increase, but fell short of market expectations by $1.48 million, indicating sales challenges in a competitive landscape.
- Strong System Sales: System-wide sales reached $618.0 million, up 23.4% year-over-year, demonstrating Shake Shack's growing brand appeal and customer base, which enhances its future growth potential.
- Accelerated Expansion: The company opened 15 new company-operated Shacks and 17 licensed Shacks in the quarter, indicating a proactive expansion strategy aimed at increasing market share and brand influence.
See More
Shake Shack Q4 Earnings Preview
- Earnings Release Date: Shake Shack is set to release its fourth-quarter earnings before the market opens on February 26, with analysts projecting earnings of $0.35 per share, a notable increase from $0.26 per share in the same period last year, indicating improved profitability.
- Revenue Expectations: According to Benzinga Pro, Shake Shack's quarterly revenue is expected to reach $401.98 million, up from $328.68 million last year, showcasing the company's strong performance and growth potential in the market.
- Executive Appointment: On January 20, Shake Shack appointed Jim Taylor as Chief Commercial Officer, a move aimed at strengthening the company's commercial strategy and market expansion capabilities, further driving performance growth.
- Stock Price Movement: Shake Shack's shares rose 3.1% to close at $92.13 on Wednesday, reflecting market optimism regarding the upcoming earnings report and the company's future prospects.
See More
