Shake Shack lowers full-year profit and revenue guidance
The company reduced its full-year net income forecast to a range of $45 million to $55 million.
Shake Shack (SHAK), the fast-casual restaurant chain, lowered its financial outlook for the second quarter and full year 2026.
The company reduced its guidance across several key performance indicators, signaling a shift in expectations for both top-line growth and operational profitability.
For the second quarter of 2026, the company lowered its total revenue guidance to between $415 million and $420 million from a previous estimate of $424 million to $428 million. Same-shack sales guidance for the period was also reduced to a range of 2.5% to 3.0%, down from the prior guide of 3.0% to 5.0%.
Profitability metrics saw similar downward revisions. The company lowered its second-quarter restaurant-level profit margin guidance to 22.0% to 23.0% from 24.0% to 24.5%. This trend extended to the full year, with restaurant-level profit margin guidance lowered to 22.0% to 23.0% from a prior range of 23.0% to 23.5%.
Full-year Adjusted EBITDA guidance was lowered to $225 million to $235 million from a prior guide of $230 million to $245 million. The company also reduced its full-year net income guidance to $45 million to $55 million from a previous range of $50 million to $60 million.
Expansion plans were slightly tightened as the company narrowed its second-quarter company-operated openings guidance to approximately 16 locations from a prior range of 16 to 19.
Management implemented structural and technological changes during the period. The company appointed Michelle Hook as Chief Financial Officer, effective May 11, 2026.
On April 1, 2026, the company launched "Project Catalyst," a technology initiative designed to modernize kitchen display and point-of-sale systems via Qu. The project also includes the launch of the company's first loyalty platform and the expansion of AI capabilities.