Shake Shack (NYSE:SHAK) Posts Earnings Results, Beats Estimates By $0.02 EPS

Shake Shack (NYSE:SHAK) posted its quarterly earnings results on Thursday. The company reported $0.37 earnings per share for the quarter, topping analysts’ consensus estimates of $0.35 by $0.02, Briefing.com reports. The business had revenue of $400.53 million during the quarter, compared to analyst estimates of $402.06 million. Shake Shack had a net margin of 3.10% and a return on equity of 10.43%. The company’s revenue was up 21.8% on a year-over-year basis. During the same period in the prior year, the business posted $0.26 earnings per share.

Here are the key takeaways from Shake Shack’s conference call:

• Shake Shack reported a strong 2025 with total revenue up 15.4% to $1.45B, Adjusted EBITDA up ~20% to about $210M, Same‑Shack sales +2.3%, and restaurant‑level margin +120 bps to 22.6%.
• Operational execution drove improvements — a new labor model and performance scorecards lifted attainment to labor targets above 90%, cut wait times to under six minutes, and increased team‑member tenure ~40%, supporting margin expansion.
• Strategic supply‑chain and development progress — comprehensive RFPs, logistics gains and supplier diversification helped mitigate inflation, while disciplined design and procurement reduced average net build cost to under $2M (≈20% YoY) and enabled an enlarged 2026 pipeline (55–60 company‑operated openings).
• Near‑term risks remain — beef inflation is running in the mid‑teens, and Q1 faces a ~250 bp revenue headwind from the 53rd week plus weather impacts, which could pressure margins before planned supply‑chain savings fully materialize.

Shake Shack Price Performance

SHAK stock opened at $98.77 on Friday. The company has a current ratio of 1.84, a quick ratio of 1.81 and a debt-to-equity ratio of 0.46. The stock has a market cap of $4.22 billion, a PE ratio of 96.83, a P/E/G ratio of 2.86 and a beta of 1.75. Shake Shack has a 12 month low of $72.93 and a 12 month high of $144.65. The company has a 50-day moving average price of $90.91 and a 200 day moving average price of $92.90.

Trending Headlines about Shake Shack

Here are the key news stories impacting Shake Shack this week:

• Positive Sentiment: Q4 results beat on EPS and showed meaningful revenue growth (EPS $0.37 vs. ~ $0.35 consensus; revenue +21.8% y/y), supporting the rally and indicating improving profitability. Shake Shack Announces Fourth Quarter and Fiscal Year 2025 Financial Results
• Positive Sentiment: Management flagged operational improvements (labor management, promotional execution) that are expanding adjusted EBITDA margins despite cost pressures — a catalyst for multiple expansion if sustained. Operational improvements lead to robust 2025 for Shake Shack
• Positive Sentiment: Clear unit-growth plan for FY26: 55–60 new company-owned Shacks plus ~40–45 licensed openings, accelerating international scale that should drive revenue and AUV upside over time. Shake Shack outlines 2026 growth strategy
• Positive Sentiment: Market reaction: shares moved up on the combination of the beat and growth commentary, reflecting investor enthusiasm for the company’s operational momentum. Shake Shack Shares Rise 7% on Revenue, New Stores
• Neutral Sentiment: Revenue was slightly below consensus ($400.5M vs. ~$402.1M), so growth is strong but not perfect — keep an eye on AUVs and comp trends for sustainability. Shake Shack Announces Fourth Quarter and Fiscal Year 2025 Financial Results
• Neutral Sentiment: Management appointed an interim principal financial officer (Peter Herpich), a short-term governance item to monitor but not an operational red flag. Shake Shack names Peter Herpich interim principal financial officer
• Neutral Sentiment: Company is using promotions to absorb higher beef costs in some markets — supports traffic but warrants watching for margin impact if commodity pressure persists. Shake Shack absorbs higher beef prices with promos
• Negative Sentiment: Q1 revenue guide came in slightly below Street expectations ($366M–$370M vs. ~$371.2M consensus), a short-term headwind that could cap near-term upside until guidance execution is visible. Shake Shack Announces Fourth Quarter and Fiscal Year 2025 Financial Results
• Negative Sentiment: Valuation is rich (PE ~97), so much of the positive news may already be priced in; investors need sustained margin expansion and comp performance to justify further gains.

Analysts Set New Price Targets

A number of research analysts recently commented on SHAK shares. Raymond James Financial set a $140.00 price target on Shake Shack in a report on Wednesday, January 21st. Wells Fargo & Company lowered their target price on shares of Shake Shack from $100.00 to $90.00 and set an “equal weight” rating on the stock in a report on Wednesday, December 17th. Oppenheimer set a $145.00 target price on shares of Shake Shack in a research note on Friday, October 31st. Deutsche Bank Aktiengesellschaft upgraded shares of Shake Shack from a “hold” rating to a “buy” rating and set a $105.00 price target on the stock in a report on Tuesday, January 6th. Finally, Stifel Nicolaus decreased their price target on shares of Shake Shack from $110.00 to $105.00 and set a “hold” rating on the stock in a research note on Friday, October 31st. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, fourteen have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, Shake Shack presently has a consensus rating of “Hold” and an average price target of $116.10.

Hedge Funds Weigh In On Shake Shack

Several hedge funds have recently bought and sold shares of the business. Geneos Wealth Management Inc. purchased a new stake in Shake Shack in the first quarter worth $26,000. Hilton Head Capital Partners LLC bought a new position in shares of Shake Shack in the fourth quarter worth about $25,000. UMB Bank n.a. increased its stake in Shake Shack by 42.2% in the 4th quarter. UMB Bank n.a. now owns 391 shares of the company’s stock worth $32,000 after buying an additional 116 shares during the period. Advisory Services Network LLC bought a new stake in Shake Shack during the 3rd quarter valued at about $38,000. Finally, Advisors Asset Management Inc. boosted its position in Shake Shack by 142.1% in the 4th quarter. Advisors Asset Management Inc. now owns 518 shares of the company’s stock valued at $42,000 after buying an additional 304 shares during the period. Institutional investors own 86.07% of the company’s stock.

About Shake Shack

Shake Shack, Inc (NYSE: SHAK) is a publicly traded hospitality company known for its modern take on the classic American roadside burger stand. The company operates a chain of quick-casual restaurants offering premium hamburgers, hot dogs, crinkle-cut fries, frozen custard, milkshakes and a curated selection of beer and wine. Shake Shack emphasizes high-quality ingredients, including 100% all-natural Angus beef with no hormones or antibiotics, and works with local suppliers where possible to maintain its commitment to fresh, responsibly sourced food.

Shake Shack traces its origins to a hot dog cart opened in New York City’s Madison Square Park in 2001 by Danny Meyer’s Union Square Hospitality Group.