Shake Shack, Inc. · NYSE:SHAK
Shake Shack — Q1 2026 Earnings Presentation
29 slides from Shake Shack's earnings presentation, May 7, 2026
Slide 1: First Quarter 2026 Shareholder Letter
First Quarter 2026 Shareholder Letter
Slide 2: Q1 2026 Highlights
Q1 2026 HIGHLIGHTS BUSINESS OVERVIEW FIRST QUARTER 2026 HIGHLIGHTS: • Total revenue grew 14.3% year -over-year to $366.7m. • Shack sales grew 14.3% year-over-year to $354.0m. • Licensing revenue grew 14.7% year -over-year to $12.7m. • System-wide sales grew 14.1% year-over-year to $558.3m. • Average
Slide 3: Q1 2026 Highlights
Q1 2026 HIGHLIGHTS Q1 2026 marked the 21st consecutive quarter of positive same -Shack sales with +4.6% growth, along with Total revenue +14.3% and 50 bps of Restaurant -level profit margin expansion versus last year. Total Revenue System -wide Sales Total revenue grew 14.3% year -over-year. System-
Slide 4: To Our Shareholders
TO OUR SHAREHOLDERS May 7, 2026 Our first quarter results reflect meaningful progress across our six strategic priorities for 2026. We delivered Total revenue of $366.7 million, growing 14.3% year -over-year. This performance was anchored by same - Shack sales growth of 4.6%, including1.4% traffic g
Slide 5: 2026 Strategic Priorities and Q1 2026 Progress
ROAD TO 1500 2026 STRATEGIC PRIORITIES Q1 2026 PROGRESS (1) BUILD A CULTURE OF LEADERS • Hosted our first ever Operations Leadership Summit; recognized ma WE ARE BUILDING A PIPELINE OF LEADERS amazing leaders and outlined our operations goals and vision. TO SUPPORT OUR ROAD TO 1,500 SHACKS. • Implem
Slide 6: Licensed Business Highlights
LICENSED BUSINESS HIGHLIGHTS Our Licensing revenue grew 14.7% year -over -year to $12.7m and Licensing sales1 grew by 13.8% to $204.3m. We are proud of our strong performance this quarter despite some revenue headwind from our Licensed business in the Middle East Although the conflict in the Middle
Slide 7: AWS and Same-Shack Sales
AWS AND SAME - SHACK SALES 1 Q1 2026 AWS $72K First quarter AWS was $72k, flat YoY. Excluding the 2025 calendar shift due to the 53 rd week, AWS would have been $78K $78K $77K $76K approximately +2.3% year-over- $72K $68K $71K $75K year. Sales were driven by strength in our app and marketing promoti
Slide 8: Restaurant-Level Profit
RESTAURANT - LEVEL PROFIT Restaurant -level costs in the first quarter (covered in more detail on the following pages) were as follows: • Food and paper costs were 28.3% of Shack sales. • Labor and related expenses were 26.2% of Shack sales. • Other operating expenses were 16.2% of Shack sales. • Oc
Slide 9: Restaurant-Level Profit: Food and Paper Costs
RESTAURANT - LEVEL PROFIT FOOD & PAPER COSTS COGS as a % of Shack Sales Food and paper costs (“COGS”) were 28.3% of Shack sales in the first quarter, up 50 bps year - over -year. Inflation in food and paper decreased by low 29.3% single-digits, with beef up by low -teens year-over-year. Through 28.7
Slide 10: Restaurant-Level Profit: Labor, Other Opex and Occupancy
RESTAURANT - LEVEL PROFIT LABOR, OTHER OPEX & OCCUPANCY Labor as a % of Shack Sales Labor and related expenses (“Labor”) were26.2% of Shack sales in the first quarter, down 180 bps year -over -year driven by more efficient scheduling and deployment through our labor management 28.0% strategies. As w
Slide 11: Additional Expenses and Adjusted EBITDA
ADDITIONAL EXPENSES & ADJUSTED EBITDA G&A Expenses 1 First quarter General and administrative $51M $54M (“G&A”) expenses were $53.6m . G&A was $54M 14.6% of Total revenue in the quarter, 190 bps higher $44M $41M $41M $51M than last year, driven by incremental investments in $44M marketingto drive sa
Slide 12: Our 2026
OUR 2026 a culture of leaders 3 comp sales behind culinary, marketing + digital innovation our licensed business 2 restaurant + supply chain operations és Shacks with best-in-class returns @ in long term strategic capabilities STAND FOR SOMETHING GOOD: We will nurture the world’s communities by deli
Slide 13: Financial Outlook
FINANCIAL OUTLOOK Fiscal second quarter and 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 a
Slide 14: Financial Details and Definitions
Financial Details & Definitions
Slide 15: Cautionary Note on Forward-Looking Statements
CAUTIONARY NOTE ON FORWARD -LOOKING STATEMENTS 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 results to
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 exclud
Slide 17: Development Highlights
DEVELOPMENT HIGHLIGHTS Thirteen Weeks Ended April 1, 2026 Company- operated Licensed System Wide Shack counts at the beginning of period 373 286 659 Openings 17 5 22 Permanent closures - (2) (2) Shack counts at the end of period 390 289 679 Shacks in the comparable base 287 Thirteen Weeks Ended Marc
Slide 18: Balance Sheets
BALANCE SHEETS (UNAUDITED) April 1, December 31, (in thousands, except share and per share amounts) 2026 2025 ASSETS Current assets: Cash and cash equivalents $ 313,650 $ 360,123 Accounts receivable, net 29,171 32,962 Inventories 6,610 7,182 Prepaid expenses and other current assets 44,438 30,080 To
Slide 19: Statements of Income
STATEMENTS OF INCOME (UNAUDITED) Thirteen Weeks Ended April 1, March 26, (in thousands, except per share amounts) 2026 2025 Shack sales $ 354,047 96.5% $ 309,838 96.6% Licensing revenue 12,690 3.5% 11,060 3.4% TOTAL REVENUE 366,737 100.0% 320,898 100.0% (1) Shack-level operating expenses : Food and
Slide 20: Cash Flow Statements
CASH FLOW STATEMENTS (UNAUDITED) Thirteen Weeks Ended April 1, March 26, (in thousands) 2026 2025 OPERATING ACTIVITIES Net income(loss) (including amounts attributable to non-controlling interests) $ (294) $ 4,513 Adjustments to reconcile net income(loss) to net cash provided by operating activities
Slide 21: Restaurant-Level Profit Definitions
RESTAURANT -LEVEL PROFIT 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 expenses. Res
Slide 22: Restaurant-Level Profit
RESTAURANT -LEVEL PROFIT Thirteen Weeks Ended (dollar amounts in thousands) April 1, 2026 March 26, 2025 Income (loss) from operations $ (2,634) $ 2,842 Less: Licensing revenue 12,690 11,060 Add: General and administrative expenses 53,608 40,640 Depreciation and amortization expense 29,120 26,543 Pr
Slide 23: Adjusted EBITDA Definitions
ADJUSTED EBITDA DEFINITIONS 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 defined above) ex
Slide 24: Adjusted EBITDA
ADJUSTED EBITDA Thirteen Weeks Ended (dollar amounts in thousands) April 1, 2026 March 26, 2025 Net income (loss) $ (294) $ 4,513 Depreciation and amortization expense 29,120 26,543 Interest expense, net 516 523 Income tax expense (benefit) (145) 737 EBITDA $ 29,197 $ 32,316 Equity-based compensatio
Slide 25: Adjusted Pro Forma Net Income and Income Per Share Definitions
ADJUSTED PRO FORMA NET INCOME AND 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 outstanding SSE Ho
Slide 26: Adjusted Pro Forma Net Income and Earnings Per Share
ADJUSTED PRO FORMA NET INCOME AND EARNINGS PER SHARE Thirteen Weeks Ended (in thousands, except per share amounts) April 1, 2026 March 26, 2025 Numerator: Net income (loss) attributable to Shake Shack Inc. $ (290) $ 4,245 Adjustments: Reallocation of Net income (loss) attributable to non-controlling
Slide 27: Adjusted Pro Forma Effective Tax Rate Definitions
ADJUSTED PRO FORMA EFFECTIVE TAX RATE DEFINITIONS Adjusted Pro Forma Effective Tax Rate Adjusted pro forma effective tax rate represents the effective tax rate assuming the full exchange of all outstandingdings, SSE Hol LLC membership interests ("LLC Interests") for shares of Class A common stock, a
Slide 28: 2026 and 2025 Adjusted Pro Forma Effective Tax Rate
2026 ADJUSTED PRO FORMA EFFECTIVE TAX RATE Thirteen Weeks Ended April 1, 2026 Income Tax Expense Income (Loss) Before Effective (dollar amounts in thousands) (Benefit) Income Taxes Tax Rate As reported $ (145) $ (439) 33.0% Non-GAAP adjustments (before tax): Impairment charge and Shack closures - 29
Slide 29: Contact Information
CONTACT INFORMATION INVESTOR CONTACT Alison Sternberg, Shake Shack Head of Investor Relations (844) Shack -04 (844 -742 -2504) investor@shakeshack.com MEDIA CONTACT Meg Davis, Shake Shack mcastranova@shakeshack.com