Shake Shack (SHAK) Q3 2026 Earnings
Minor non-GAAP adjustments in Q3 2026: impairment charge and Shack closures of $32 thousand, executive transition costs of $31 thousand, and other items (Middle East conflict and non-recurring professional fees) of $47 thousand; per-share impact of non-GAAP adjustments shown as '—'. GAAP diluted EPS was $0.39.
How Did SHAK Stock React to Q3 2026 Earnings?
Did SHAK Beat Earnings? Q3 2026 Results
Yes. Shake Shack reported Q3 2026 earnings of $0.40 a share on Nov 5, 2026, beating the $0.34 consensus estimate by 16.3%. Revenue was $423.3M against a $426.7M estimate.
Shake Shack delivered a profit beat but a modest revenue miss in the third quarter of 2026, as aggressive unit expansion weighed on average weekly sales even as earnings comfortably cleared expectations. The company posted adjusted EPS of $0.40, ahead of the $0.34 consensus by 16.28%, while revenue of $423.27 million grew 15.2% year over year but fell just short of the $426.65 million analysts had anticipated. The primary driver of the earnings strength was a sharp improvement in G&A leverage, which fell to 10.6% of revenue from 12.1% a year ago, helping adjusted EBITDA rise 16.0% to $62.79 million. The quarter also marked the company's fifth consecutive period of positive traffic growth, with same-Shack sales up 2.5%. Shake Shack opened a record 21 company-operated locations in the quarter, bringing its system-wide footprint to 738 Shacks, and noted activist investor Starboard Value's recent stake as a signal of confidence in the brand's trajectory. For the full year, management guided for revenue of $1.60 billion to $1.70 billion and adjusted EBITDA of $225 million to $235 million, targeting 60 to 65 company-operated openings.
- Same-Shack sales +2.5%, including 0.8% traffic growth and 1.7% price/mix
- Gross pricing of about 4% across channels; mix pressured by targeted offers and promotions
- Owned digital channels about 60% of Shack sales; third-party delivery and owned channels driving traffic
- Food and paper costs down 100 bps to 28.3% on menu price and lower bun, chicken and dairy costs
- Labor up 50 bps to 25.4% on team member investments
- Other opex up 90 bps to 16.1% on higher delivery commissions and new openings
- AWS down 3.8% to $75k as new Shacks ramp
- Adjusted EBITDA up 16.0% to $62.8m (14.8% margin)
- Licensing sales up 8.3% to $236.8m, led by new Shacks in U.S. airports, Canada and the UK
“Company-operated same-Shack sales grew 2.5%, including 0.8% traffic growth, marking our fifth consecutive quarter of positive traffic.”
Shake Shack CEO, on the earnings call
What Is Shake Shack's Outlook?
FY2026 guidance: - Company-operated openings: 60–65. - Licensed openings: 40–45, with the company now expecting the high end. - Total revenue: $1.6b–$1.7b. - Licensing revenue: $57.0m–$59.0m. - Same-Shack sales vs 2025: up low-single-digits. - Restaurant-level profit margin: 22.0%–23.0%. - G&A: 12.0%–13.0% of total revenue. - Equity-based compensation: about $20m. - Depreciation and amortization: $124m–$128m. - Pre-opening costs: $26m–$28m. - Net income: $45m–$55m. - Adjusted EBITDA: $225m–$235m. - Adjusted pro forma tax rate: 25%–27%. The guidance assumes some pressure on consumer spending and ongoing inflationary headwinds. It does not reflect potential tariff changes. Licensed debuts in Panama, Vietnam and U.S. regional casinos with PENN Entertainment are expected in Q4. The company reiterated its long-term goal of 1,500 Company-operated Shacks.
SHAK YoY Financials
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $423.3M | $367.4M | +15.2% |
| Operating Income | $21.5M | $18.5M | +15.8% |
| Net Income | $16.5M | $12.5M | +31.9% |
SHAK Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.