Shake Shack stock takes a hit after it lowers sales guidance
The fast-casual burger chain lowered its expectations for sales and profitability, citing economic uncertainty and competition.
June 2, 2026
Shake Shack is not quite having the quarter it expected.
The fast-casual burger chain on Tuesday lowered its expectations for second quarter revenue, same-store sales and profitability, citing growing competition and economic uncertainty.
The results sent the company’s stock down more than 9% in early-morning trading on Tuesday.
Shake Shack said that its same-store sales are expected to increase 2.5% to 3% this quarter, down from its initial guidance of 3% to 5%. It also expects to open 16 locations, down from 16 to 19. Revenues at the chain are expected to be $415 million to $420 million, down from $424 million to $428 million.
Restaurant-level profit margin, meanwhile, is expected to be 22% to 23%, down from 24% to 24.5%.
The company also lowered its full-year guidance for restaurant-level profit margin, adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization, and net income. For the full year, adjusted EBITDA is expected to be $225 million to $235 million, down from $230 million to $245 million
Net income is expected to be $45 million to $55 million, down from $50 million to $60 million.
Shake Shack released the guidance in advance of a series of presentations that executives are expected to make with investors this week.
It also comes as the restaurant industry faces a number of economic challenges, including rising gas prices, overall uncertainty and a value war leading many chains to discount key products.
About the Author
Jonathan Maze
Editor in Chief, Restaurant Business
Restaurant Business Editor-in-Chief Jonathan Maze is a longtime industry journalist who writes about restaurant finance, mergers and acquisitions and the economy, with a particular focus on quick-service restaurants. He writes daily about the factors influencing the operating environment, including labor and food costs and various industry trends such as technology and delivery.
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