Slide 1: Second Quarter 2026 Shareholder Letter
Second Quarter 2026 Shareholder Letter
Slide 2: Q2 2026 Highlights
Q2 2026 HIGHLIGHTS BUSINESS OVERVIEW SECOND QUARTER 2026 HIGHLIGHTS: • Total revenue grew 17.2% year-over-year to $417.6m. • Shack sales grew 17.5% year-over-year to $403.4m. • Licensing revenue grew 7.1% year-over-year to $14.2m. • System-wide sales grew 13.8% year-over-year to $625.8m. • Average w
Slide 3: Q2 2026 Highlights
Q2 2026 HIGHLIGHTS Q2 2026 marked four consecutive quarters of positive traffic, our 22nd consecutive quarter of positive same- Shack sales, and our strongest second quarter of unit growth on record, with 16 new Company-operated Shacks Total Revenue System-wide Sales Total revenue grew 17.2% year-ov
Slide 4: To Our Shareholders
TO OUR SHAREHOLDERS August 5, Our second quarter results reflect the resilience of the Shake Shack model in one of the most challenging cost 2026 environments we have faced in many years. We delivered Total revenue growth of 17.2% year-over-year to $417.6 million, driven by the opening of new Compan
Slide 5: Road To 1500
ROAD TO 1500 2026 STR ATEGIC PRIORITIES Q2 2026 PROGRESS (1) BUILD A CULTURE OF LEADERS • Leadership at Shake Shack is a mindset rooted in accountability, clarity, WE ARE BUILDING A PIPELINE OF LEADERS and purpose. TO SUPPORT OUR ROAD TO 1,500 SHACKS. • We’ve strengthened our culture to empower lead
Slide 6: Licensed Business Highlights
LICENSED BUSINESS HIGHLIGHTS Our Licensing revenue grew 7.1% year-over-year to $14.2m and Licensing sales1 grew by 7.6% to $222.4m. We are pleased with the performance of our licensed business despite a challenging global environment. The ongoing conflict in the Middle East continued to weigh most h
Slide 7: AWS And Same-Shack Sales
AWS AND SAME - SHAC K SALE S1 Second quarter AWS was $78k, flat YoY. Sales were driven by our ongoing investments across culinary innovation, $78K $78K $77K $78K targeted marketing, and digital $72K engagement, partially offset by menu mix. Total YoY 12% 16% 22% 14% 18% Shack Sales Growth Second Thi
Slide 8: Restaurant-Level Profit
RESTAUR ANT-LE VEL PROFIT Restaurant-level costs in the second quarter (covered in more detail on the following pages) were as follows: • Food and paper costs were 28.8% of Shack sales. • Labor and related expenses were 25.1% of Shack sales. • Other operating expenses were 15.6% of Shack sales. • Oc
Slide 9: Restaurant-Level Profit: Food & Paper Costs
RESTAUR ANT-LE VEL PROFIT FOOD & PAPER COSTS COGS as a % of Shack Sales Food and paper costs (“COGS”) were 28.8% of Shack sales in the second quarter, up 60 bps year- over-year. The increase year-over-year was mainly driven 29.3% by higher commodity costs, primarily beef, promotional activity 28.7%
Slide 10: Restaurant-Level Profit: Labor, Other Opex & Occupancy
RESTAUR ANT-LE VEL PROFIT L ABOR, OTHER OPE X & OCCUPANC Y Labor as a % of Shack Sales Labor and related expenses (“Labor”) were 25.1% of Shack sales in the second quarter, down 60 bps year-over-year. By this time last year, we had fully rolled out our labor model supported by our performance scorec
Slide 11: Additional Expenses & Adjusted EBITDA
ADDITIONAL E XPENSE S & ADJUSTED EBITDA G&A Expenses1 Second quarter General and administrative $54M (“G&A”) expenses were $48.3m, or $46.3m $51M $48M excluding one-time adjustments. G&A, excluding one- $44M $52M time adjustments, was 11.1% of Total revenue in the $41M $46M $51M quarter, 20 bps lowe
Slide 12: Our 2026
OUR 2026 a culture of leaders 3 comp sales behind culinary, marketing + digital innovation our licensed business y restaurant + supply chain operations 4, Shacks with best-in-class returns © in long term strategic capabilities OUR STAND FOR SOMETHING GOOD: We will nurture the world’s communities by
Slide 13: Financial Outlook
FINANCIAL OUTLOOK Fiscal year 2026 guidance is derived from preliminary, unaudited results based on information currently available to the Company. We factor in an assumption around a degree of pressure on the consumer spending landscape and ongoing inflationary headwinds and do not reflect any chan
Slide 14: Financial Details & Definitions
Financial Details & Definitions
Slide 15: Cautionary Note On Forward-Looking Statements
C AUTIONARY NOTE ON FORWARD -LOOKIN G STAT E M EN TS This presentation contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to known and unknown risks, uncertainties and other important factors that may cause actual result
Slide 16: Definitions
DEFINITIONS The following definitions, and definitions on the subsequent pages, apply to terms as used in this shareholder letter: "Shack sales" is defined as the aggregate sales of food, beverages, gift card breakage income, and Shake Shack branded merchandise at Company-operated Shacks and exclude
Slide 17: Development Highlights
DEVELOPMENT HIGHLIGHTS Thirteen Weeks Ended July 1, 2026 Company- operated Licensed System Wide Shack counts at the beginning of period 390 289 679 Openings 16 11 27 Permanent closures - (3) (3) Shack counts at the end of period 406 297 703 Shacks in the comparable base 296 Twenty-six Weeks Ended Ju
Slide 18: Balance Sheets
BALANCE SHEETS (UNAUDITED) July 1, December 31, (in thousands, except share and per share amounts) 2026 2025 ASSETS Current assets: Cash and cash equivalents $ 307,962 $ 360,123 Accounts receivable, net 34,657 32,962 Inventories 7,359 7,182 Prepaid expenses and other current assets 43,780 30,080 Tot
Slide 19: Statements Of Income
STATEMENTS OF INCOME (UNAUDITED) Thirteen Weeks Ended Twenty-Six Weeks Ended July 1, June 25, July 1, June 25, (in thousands, except per share amounts) 2026 2025 2026 2025 Shack sales $ 403,437 96.6% $ 343,224 96.3% $ 757,484 96.6% $ 653,062 96.4% Licensing revenue 14,181 3.4% 13,242 3.7% 26,871 3.4
Slide 20: Cash Flow Statements
C A SH FLOW STAT E ME N TS (UNAUDITED) Twenty-Six Weeks Ended July 1, June 25, (in thousands) 2026 2025 OPERATING ACTIVITIES Net income (including amounts attributable to non-controlling interests) $ 16,588 $ 22,996 Adjustments to reconcile net income to net cash provided by operating activities: De
Slide 21: Restaurant-Level Profit Definitions
R E STAUR A N T -LE V EL P RO FI T DEFINITIONS Restaurant-Level Profit “Restaurant-level profit,” a non-GAAP measure, is defined as Shack sales less Shack-level operating expenses, including Food and paper costs, Labor and related expenses, Other operating expenses, and Occupancy and related expense
Slide 22: Restaurant-Level Profit
R E STAUR A N T -LE V EL P RO FI T Thirteen Weeks Ended Twenty-Six Weeks Ended (dollar amounts in thousands) July 1, 2026 June 25, 2025 July 1, 2026 June 25, 2025 Income from operations $ 20,746 $ 22,374 $ 18,112 $ 25,216 Less: Licensing revenue 14,181 13,242 26,871 24,302 Add: General and administr
Slide 23: Adjusted EBITDA Definitions
A DJ US T E D E B I T DA D E F I NI T I O NS EBITDA and Adjusted EBITDA EBITDA, a non-GAAP measure, is defined as Net income before interest expense (net of interest income), Income tax expense and Depreciation and amortization expense. Adjusted EBITDA, a non-GAAP measure, is defined as EBITDA (as d
Slide 24: Adjusted EBITDA
A DJ US T E D E B I T DA Thirteen Weeks Ended Twenty-Six Weeks Ended (dollar amounts in thousands) July 1, 2026 June 25, 2025 July 1, 2026 June 25, 2025 Net income $ 16,882 $ 18,483 $ 16,588 $ 22,996 Depreciation and amortization expense 30,717 26,545 59,837 53,088 Interest expense, net 468 500 984
Slide 25: Adjusted Pro Forma Net Income And Income Per Share Definitions
A DJ US T E D P RO F O R M A NE T I N C O M E A ND INCOME PER SHARE DEFINITIONS Adjusted Pro Forma Net Income and Adjusted Pro Forma Earnings Per Fully Exchanged and Diluted Share Adjusted pro forma net income represents Net income attributable to Shake Shack Inc. assuming the full exchange of all o
Slide 26: Adjusted Pro Forma Net Income And Earnings Per Share
A DJ US T E D P RO F O R M A NE T I N C O M E A ND EARNINGS PER SHARE Thirteen Weeks Ended Twenty-Six Weeks Ended (in thousands, except per share amounts) July 1, 2026 June 25, 2025 July 1, 2026 June 25, 2025 Numerator: Net income attributable to Shake Shack Inc. $ 15,680 $ 17,148 $ 15,390 $ 21,393
Slide 27: Adjusted Pro Forma Effective Tax Rate Definitions
A DJ US T E D P RO F O R M A E F F E C T I V E TA X R AT E DEFINITIONS Adjusted Pro Forma Effective Tax Rate Adjusted pro forma effective tax rate represents the effective tax rate assuming the full exchange of all outstanding SSE Holdings, LLC membership interests ("LLC Interests") for shares of Cl
Slide 28: Adjusted Pro Forma Effective Tax Rate
2 0 2 6 A DJ US T E D P RO F O R M A E F F E C T I V E TA X R AT E Thirteen Weeks Ended Twenty-six Weeks Ended July 1, 2026 July 1, 2026 Income Before Income Effective Income Before Income Effective Income Tax Expense Income Tax Expense (dollar amounts in thousands) Taxes Tax Rate Taxes Tax Rate As
Slide 29: Contact Information
C O N TAC T INFO R M AT ION INVESTOR CONTACT Alison Sternberg, Shake Shack Head of Investor Relations (844) Shack-04 (844-742-2504) investor@shakeshack.com MEDIA CONTACT Corey Gee, Shake Shack cblumenthal@shakeshack.com