Shake Shack cuts Q2 and full-year guidance amid economic headwinds

Shake Shack Inc. (NYSE: SHAK) reduced its financial guidance for the second quarter and full year 2026, citing macroeconomic uncertainty and competitive pressures.

The burger chain lowered its second quarter total revenue forecast to $415-420 million from a previous range of $424-428 million. Same-shack sales growth expectations were cut to 2.5%-3.0% from 3.0%-5.0%.

Restaurant-level profit margins for the quarter were revised down to 22.0%-23.0% from 24.0%-24.5%. The company expects to open approximately 16 company-operated locations in the quarter, down from the prior range of 16-19.

For the full fiscal year ending December 30, 2026, Shake Shack reduced its restaurant-level profit margin guidance to 22.0%-23.0% from 23.0%-23.5%. Adjusted EBITDA expectations were lowered to $225-235 million from $230-245 million, while net income projections dropped to $45-55 million from $50-60 million.

"Our updated guidance reflects the current macroeconomic uncertainty, competitive landscape, and related impacts now that we are more than two-thirds through the quarter," said CEO Rob Lynch.

The company maintained its licensing revenue guidance of $13.5-13.7 million for the second quarter and kept its licensed openings target at approximately eight locations.

Shake Shack operates over 690 locations system-wide, including more than 445 in 35 U.S. states and over 245 international locations. The guidance update was provided ahead of June investor conferences, according to the company's press release.

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