Shake Shack Same-Shack Sales Growth Slows to 2.5%

The Tip Desk · November 7, 2026 · 3 min read

Total revenue was $423.3 million, up 15.2% from a year earlier, as traffic rose 0.8% for a fifth straight quarter.

Shake Shack Inc. (SHAK) posted third-quarter revenue of $423.3 million, up 15.2% from a year earlier, as same-Shack sales growth slowed to 2.5% after 3.5% in the second quarter and 4.6% in the first.

The burger chain said company-operated same-Shack sales included 0.8% traffic growth, which it said marked a fifth consecutive quarter of positive traffic and extended positive same-Shack sales growth to 23 consecutive quarters. Shack sales were $408.0 million, up 15.6% year over year. Licensing revenue was $15.3 million.

System-wide sales were $644.8 million, up 12.8% from a year earlier, after 13.8% growth in the second quarter and 14.1% in the first. Chief Executive Officer Rob Lynch said the company’s strategy of restaurant operations, culinary excellence, and targeted media and digital investments continued to drive same-Shack sales. Chief Financial Officer Michelle Hook said both owned digital channels and third-party delivery were driving traffic growth, with owned channels also used to capture guest data and drive higher guest lifetime value.

Operating income was $21.5 million, versus $20.7 million in the second quarter and an operating loss of $2.6 million in the first. Net income was $17.8 million. Net income attributable to Shake Shack Inc. was $16.5 million, or $0.39 a share. Adjusted pro forma net income was $17.8 million, or $0.40 a fully exchanged and diluted share.

Restaurant-level profit was $91.7 million, or 22.5% of Shack sales, versus $92.7 million, or 23.0%, in the second quarter and $75.1 million, or 21.2%, in the first. The company said the restaurant-level profit margin declined 30 basis points versus last year, driven by increased operating expenses and investments in labor, partially offset by lower food and paper costs.

Adjusted EBITDA was $62.8 million, up 16.0% year over year, after 3.9% growth in the second quarter and a 9.3% decline in the first. Adjusted EBITDA margin was 14.8% of total revenue.

On the income statement, food and paper costs were 28.3% of Shack sales, labor and related expenses 25.4%, other operating expenses 16.1%, occupancy and related expenses 7.7%, and general and administrative expenses 10.6%. Pre-opening costs were $7.0 million. Depreciation and amortization was $32.9 million.

The company opened 21 new Company-operated Shacks and 16 new licensed Shacks in the quarter, versus 16 and 11 in the second quarter and 17 and five in the first. It said it had expanded to over 750 locations system-wide, including over 480 in 36 U.S. states and the District of Columbia, and nearly 270 international locations.

Cash and cash equivalents were $319.0 million at September 30, 2026. Long-term debt was $248.5 million. Lynch said he was proud of how 15,000 team members and licensed partners showed up over the last few months.