Shake Shack Inc ( (SHAK) ) has released its Q1 earnings. Here is a breakdown of the information Shake Shack Inc presented to its investors.
Confident Investing Starts Here:
- Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
- Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter
Shake Shack Inc., a popular fast-casual restaurant chain known for its high-quality burgers, chicken, and shakes, has reported its financial results for the first quarter of 2025, showcasing its continued growth and strategic advancements in the fast-food industry.
In the first quarter of 2025, Shake Shack Inc. reported a total revenue increase of 10.5% year-over-year, reaching $320.9 million. The company’s Shack sales contributed $309.8 million, while licensing revenue accounted for $11.1 million. Shake Shack also opened four new company-operated Shacks, including two drive-thrus, and seven new licensed Shacks, indicating a robust expansion strategy.
Key financial highlights include a 10.4% increase in system-wide sales to $489.4 million and a slight rise in same-Shack sales by 0.2%. The company achieved an operating income of $2.8 million, a significant improvement from zero in the previous year. Net income rose to $4.5 million, with adjusted EBITDA increasing by 13.5% to $40.7 million. The restaurant-level profit margin improved to 20.7% of Shack sales, up 120 basis points from the previous year.
Looking ahead, Shake Shack’s management remains optimistic about its growth prospects. The company plans to continue its expansion with new Shack openings and innovations in its menu offerings. Despite macroeconomic challenges, Shake Shack is committed to enhancing operational efficiencies and driving profitability, aiming for consistent revenue and EBITDA growth in the coming years.