EX-99.1 2 shak-20260507_exhibit991.htm EX-99.1 Document
Exhibit 99.1

 shak-img_shakeshacklogoa16a.jpg
Shake Shack Announces First Quarter 2026 Financial Results
▪Total revenue of $366.7 million, up 14.3% versus 2025, including $354.0 million of Shack sales and $12.7 million of Licensing revenue.
▪System-wide sales of $558.3 million, up 14.1% versus 2025.
▪Same-Shack sales up 4.6% versus 2025.
▪Operating loss of $2.6 million versus operating income of $2.8 million in 2025.
•Restaurant-level profit(1) of $75.1 million, or 21.2% of Shack sales.
▪Net loss of $0.3 million versus net income of $4.5 million in 2025.
•Adjusted EBITDA(1) of $37.0 million, down 9.3% versus 2025.
▪Net loss attributable to Shake Shack Inc. of $0.3 million, or loss of $0.01 per diluted share.
•Adjusted pro forma net income(1) of $0.1 million, or earnings of $0.00 per fully exchanged and diluted share.
▪Opened 17 new Company-operated Shacks and five new licensed Shacks.
NEW YORK, NY (Business Wire) — May 7, 2026 — Shake Shack Inc. (“Shake Shack” or the “Company”) (NYSE: SHAK) has posted its results for the first quarter of 2026 in a Shareholder Letter in the Quarterly Results section of the Company's Investor Relations website, which can be found here: Q1 2026 Shake Shack Shareholder Letter.

Shake Shack will host a conference call at 8:00 a.m. ET. Hosting the call will be Robert Lynch, Chief Executive Officer. The conference call can be accessed live over the phone by dialing (877) 407-0792, or for international callers by dialing (201) 689-8263. A replay of the call will be available until May 14, 2026 by dialing (844) 512-2921 or for international callers by dialing (412) 317-6671; the passcode is 13759466.

The live audio webcast of the conference call will be accessible in the Events & Presentations section of the Company's Investor Relations website at investor.shakeshack.com. An archived replay of the webcast will also be available shortly after the live event has concluded.

(1)Restaurant-level profit, Adjusted EBITDA and Adjusted pro forma net income are non-GAAP measures. A reconciliation to the most directly comparable financial measures presented in accordance with GAAP is set forth in the schedules accompanying this release. See “Non-GAAP Financial Measures” below.

Exhibit 99.1
About Shake Shack
Shake Shack serves elevated versions of American classics using only the best ingredients. It’s known for its delicious made-to-order Angus beef burgers, crispy chicken, hand-spun milkshakes, house-made lemonades, beer, wine, and more. With its high-quality food at a great value, warm hospitality, and a commitment to crafting uplifting experiences, Shake Shack quickly became a cult-brand with widespread appeal. Shake Shack’s purpose is to Stand For Something Good®, from its premium ingredients and employee development, to its inspiring designs and deep community investment. Since the original Shack opened in 2004 in NYC’s Madison Square Park, the Company has expanded to over 685 locations system-wide, including over 440 in 35 U.S. States and the District of Columbia, and 245 international locations across London, Hong Kong, Shanghai, Singapore, Mexico City, Istanbul, Dubai, Tokyo, Seoul and more.

Skip the line with the Shack App, a mobile ordering app that lets you save time by ordering ahead! Guests can select their location, pick their food, choose a pickup time and their meal will be cooked-to-order and timed to arrival. Available on iOS and Android.
Media:
Meg Davis, Shake Shack
mcastranova@shakeshack.com
Investor Relations:
Alison Sternberg, Head of Investor Relations
(844) SHACK-04 (844-742-2504)
investor@shakeshack.com

Definitions
The following definitions apply to these terms as used in this release:
"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 excludes sales from licensed Shacks.
“System-wide sales” is an operating measure and consists of sales from Company-operated Shacks and licensed Shacks. The Company does not recognize the sales from licensed Shacks as revenue. Of these amounts, revenue is limited to licensing revenue based on a percentage of sales from licensed Shacks, as well as certain up-front fees, such as territory fees, opening fees, and termination fees.
"Same-Shack sales" represents Shack sales for the comparable Shack base, which is defined as the number of Company-operated Shacks open for 24 full fiscal months or longer. For consecutive days that Shacks were temporarily closed, the comparative period was also adjusted.
"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.
"Restaurant-level profit margin," 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 as a percentage of Shack sales.
“EBITDA,” a non-GAAP measure, is defined as Net income (loss) before interest expense (net of interest income), Income tax expense (benefit), and Depreciation and amortization expense.
“Adjusted EBITDA,” a non-GAAP measure, is defined as EBITDA (as defined above), excluding equity-based compensation expense, Impairments, loss on disposal of assets, and Shack closures, amortization of cloud-based software implementation costs, as well as certain non-recurring items that the Company does not believe directly reflect its core operations and may not be indicative of the Company's recurring business operations.
"Adjusted pro forma net income," a non-GAAP measure, represents Net income (loss) attributable to Shake Shack Inc. assuming the full exchange of all outstanding SSE Holdings, LLC membership interests ("LLC Interests") for shares of Class A common stock, adjusted for certain non-recurring items that the Company does not believe are directly related to its core operations and may not be indicative of its recurring business operations.

Exhibit 99.1
SHAKE SHACK INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in thousands, except share and per share amounts)
April 1
2026		December 31
2025
ASSETS
Current assets:
Cash and cash equivalents$313,650 $360,123 
Accounts receivable, net29,171 32,962 
Inventories6,610 7,182 
Prepaid expenses and other current assets44,438 30,080 
Total current assets393,869 430,347 
Property and equipment, net of accumulated depreciation of $577,755 and $551,004, respectively.
649,245 625,851 
Operating lease assets539,238 507,253 
Deferred income taxes, net325,179 322,385 
Other assets10,101 10,373 
TOTAL ASSETS$1,917,632 $1,896,209 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable$27,017 $24,747 
Accrued expenses95,488 103,354 
Accrued wages and related liabilities21,151 25,481 
Operating lease liabilities, current65,195 63,553 
Other current liabilities23,761 27,783 
Total current liabilities232,612 244,918 
Long-term debt247,993 247,731 
Long-term operating lease liabilities608,605 575,138 
Liabilities under tax receivable agreement, net of current portion244,613 244,463 
Other long-term liabilities29,220 30,210 
Total liabilities1,363,043 1,342,460 
Commitments and contingencies
Stockholders' equity:
Preferred stock, no par value—10,000,000 shares authorized; none issued and outstanding as of April 1, 2026 and December 31, 2025.— — 
Class A common stock, $0.001 par value—200,000,000 shares authorized; 40,350,155 and
40,254,281 shares issued and outstanding as of April 1, 2026 and December 31, 2025, respectively.		40 40 
Class B common stock, $0.001 par value—35,000,000 shares authorized; 2,430,789 and
2,434,789 shares issued and outstanding as of April 1, 2026 and December 31, 2025, respectively.		2 2 
Additional paid-in capital453,457 452,577 
Retained earnings72,419 72,709 
Accumulated other comprehensive loss(6)(1)
Total stockholders' equity attributable to Shake Shack Inc.525,912 525,327 
Non-controlling interests28,677 28,422 
Total equity554,589 553,749 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$1,917,632 $1,896,209 

Exhibit 99.1
SHAKE SHACK INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(UNAUDITED)
(in thousands, except per share amounts)
Thirteen Weeks Ended
April 1
2026		March 26
2025
Shack sales$354,047 96.5 %$309,838 96.6 %
Licensing revenue12,690 3.5 %11,060 3.4 %
TOTAL REVENUE366,737 100.0 %320,898 100.0 %
Shack-level operating expenses(1):
Food and paper costs100,023 28.3 %86,037 27.8 %
Labor and related expenses92,717 26.2 %86,668 28.0 %
Other operating expenses57,512 16.2 %48,262 15.6 %
Occupancy and related expenses28,654 8.1 %24,631 7.9 %
General and administrative expenses53,608 14.6 %40,640 12.7 %
Depreciation and amortization expense29,120 7.9 %26,543 8.3 %
Pre-opening costs6,870 1.9 %3,218 1.0 %
Impairments, loss on disposal of assets, and Shack closures867 0.2 %2,057 0.6 %
TOTAL EXPENSES369,371 100.7 %318,056 99.1 %
INCOME (LOSS) FROM OPERATIONS(2,634)(0.7)%2,842 0.9 %
Other income, net2,743 0.7 %2,971 0.9 %
Interest expense(548)(0.1)%(563)(0.2)%
INCOME (LOSS) BEFORE INCOME TAXES(439)(0.1)%5,250 1.6 %
Income tax expense (benefit)(145)— %737 0.2 %
NET INCOME (LOSS)(294)(0.1)%4,513 1.4 %
Less: Net income (loss) attributable to non-controlling interests(4)— %268 0.1 %
NET INCOME (LOSS) ATTRIBUTABLE TO SHAKE SHACK INC.$(290)(0.1)%$4,245 1.3 %
Earnings (Loss) per share of Class A common stock:
Basic$(0.01)$0.11 
Diluted$(0.01)$0.10 
Weighted-average shares of Class A common stock outstanding:
Basic40,289 40,120 
Diluted40,289 41,864 
(1)As a percentage of Shack sales.


Exhibit 99.1
SHAKE SHACK INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)
Thirteen Weeks Ended
April 1
2026		March 26
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:
Depreciation and amortization expense29,120 26,543 
Amortization of debt issuance costs262 262 
Amortization of cloud computing assets512 606 
Non-cash operating lease cost24,687 20,674 
Equity-based compensation5,160 4,541 
Deferred income taxes(1,590)(644)
Non-cash interest
26 33 
Impairments, loss on disposal of assets, and Shack closures
867 2,057 
Changes in operating assets and liabilities:
Accounts receivable3,857 1,403 
Inventories572 702 
Prepaid expenses and other current assets(13,677)(3,786)
Other assets(2,128)(2,375)
Accounts payable3,301 (2,225)
Accrued expenses(12,516)5,566 
Accrued wages and related liabilities(4,330)(4,874)
Other current liabilities(5,332)(409)
Operating lease liabilities(21,536)(23,128)
Other long-term liabilities1,528 1,763 
NET CASH PROVIDED BY OPERATING ACTIVITIES8,489 31,222 
INVESTING ACTIVITIES
Purchases of property and equipment(47,192)(29,352)
NET CASH USED IN INVESTING ACTIVITIES(47,192)(29,352)
FINANCING ACTIVITIES
Payments on principal of finance leases(1,591)(1,290)
Distributions paid to non-controlling interest holders(12)(21)
Payments under tax receivable agreement, including interest(977)(24)
Net proceeds from stock option exercises69 123 
Employee withholding taxes related to net settled equity awards(5,254)(8,450)
NET CASH USED IN FINANCING ACTIVITIES(7,765)(9,662)
Effect of exchange rate changes on cash and cash equivalents(5)(1)
DECREASE IN CASH AND CASH EQUIVALENTS(46,473)(7,793)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD360,123 320,714 
CASH AND CASH EQUIVALENTS AT END OF PERIOD$313,650 $312,921 

Exhibit 99.1
SHAKE SHACK INC.
NON-GAAP FINANCIAL MEASURES
(UNAUDITED)


To supplement the condensed consolidated financial statements, which are prepared and presented in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company uses the following non-GAAP financial measures: Restaurant-level profit, Restaurant-level profit margin, EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted pro forma net income and adjusted pro forma earnings per fully exchanged and diluted share (collectively the "non-GAAP financial measures").
Restaurant-Level Profit
Restaurant-level profit 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.
How This Measure Is Useful
When used in conjunction with GAAP financial measures, Restaurant-level profit and Restaurant-level profit margin are supplemental measures of operating performance that the Company believes are useful measures to evaluate the performance and profitability of its Shacks. Additionally, Restaurant-level profit and Restaurant-level profit margin are key metrics used internally by management to develop internal budgets and forecasts, as well as assess the performance of its Shacks relative to budget and against prior periods. It is also used to evaluate employee compensation as it serves as a metric in certain performance-based employee bonus arrangements. The Company believes presentation of Restaurant-level profit and Restaurant-level profit margin provides investors with a supplemental view of its operating performance that can provide meaningful insights to the underlying operating performance of the Shacks, as these measures depict the operating results that are directly impacted by the Shacks and exclude items that may not be indicative of, or are unrelated to, the ongoing operations of the Shacks. It may also assist investors to evaluate the Company's performance relative to peers of various sizes and maturities and provides greater transparency with respect to how management evaluates the business, as well as the financial and operational decision-making.
Limitations of the Usefulness of this Measure
Restaurant-level profit and Restaurant-level profit margin may differ from similarly titled measures used by other companies due to different methods of calculation. Presentation of Restaurant-level profit and Restaurant-level profit margin is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Restaurant-level profit excludes certain costs, such as General and administrative expenses and Pre-opening costs, which are considered normal, recurring cash operating expenses and are essential to support the operation and development of the Company's Shacks. Therefore, this measure may not provide a complete understanding of the Company's operating results as a whole and Restaurant-level profit and Restaurant-level profit margin should be reviewed in conjunction with the Company's GAAP financial results.


Exhibit 99.1
A reconciliation of Restaurant-level profit to Income (loss) from operations, the most directly comparable GAAP financial measure, is set forth below.
Thirteen Weeks Ended
(dollar amounts in thousands)April 1
2026		March 26
2025
Income (loss) from operations$(2,634)$2,842 
Less:
Licensing revenue12,690 11,060 
Add:
General and administrative expenses53,608 40,640 
Depreciation and amortization expense29,120 26,543 
Pre-opening costs6,870 3,218 
Impairments, loss on disposal of assets, and Shack closures867 2,057 
Restaurant-level profit$75,141 $64,240 
Total revenue$366,737 $320,898 
Less: Licensing revenue12,690 11,060 
Shack sales$354,047 $309,838 
Restaurant-level profit margin(1)
21.2%20.7%
(1)As a percentage of Shack sales.

Exhibit 99.1
SHAKE SHACK INC.
NON-GAAP FINANCIAL MEASURES
(UNAUDITED)
EBITDA and Adjusted EBITDA
EBITDA, a non-GAAP measure, is defined as Net income (loss) before interest expense (net of interest income), Income tax expense (benefit) and Depreciation and amortization expense. Adjusted EBITDA, a non-GAAP measure, is defined as EBITDA excluding equity-based compensation expense, Impairments, loss on the disposal of assets, and Shack closures, amortization of cloud-based software implementation costs, as well as certain non-recurring items that the Company does not believe directly reflect its core operations and may not be indicative of the Company's recurring business operations.
How These Measures Are Useful
When used in conjunction with GAAP financial measures, EBITDA and adjusted EBITDA are supplemental measures of operating performance that the Company believes are useful measures to facilitate comparisons to historical performance and competitors' operating results. Adjusted EBITDA is a key metric used internally by management to develop internal budgets and forecasts and also serves as a metric in its performance-based equity incentive programs and certain bonus arrangements. The Company believes presentation of EBITDA and adjusted EBITDA provides investors with a supplemental view of the Company's operating performance that facilitates analysis and comparisons of its ongoing business operations because they exclude items that may not be indicative of the Company's ongoing operating performance.
Limitations of the Usefulness of These Measures
EBITDA and adjusted EBITDA may differ from similarly titled measures used by other companies due to different methods of calculation. Presentation of EBITDA and adjusted EBITDA is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. EBITDA and adjusted EBITDA exclude certain normal recurring expenses. Therefore, these measures may not provide a complete understanding of the Company's performance and should be reviewed in conjunction with the GAAP financial measures.



Exhibit 99.1
A reconciliation of EBITDA and adjusted EBITDA to Net income (loss), the most directly comparable GAAP measure, is set forth below.
Thirteen Weeks Ended
(dollar amounts in thousands)April 1
2026		March 26
2025
Net income (loss)$(294)$4,513 
Depreciation and amortization expense29,120 26,543 
Interest expense, net516 523 
Income tax expense (benefit)(145)737 
EBITDA$29,197 $32,316 
Equity-based compensation5,160 4,541 
Amortization of cloud-based software implementation costs512 606 
Impairments, loss on disposal of assets, and Shack closures
867 2,057 
Executive transition costs(1)
1,130 — 
Legal settlements(2)
— 983 
Restatement costs(3)
— 254 
Other(4)
99 (12)
Adjusted EBITDA$36,965 $40,745 
Adjusted EBITDA margin(5)
10.1 %12.7 %
(1) Expenses incurred in connection with the termination, search, and hiring of certain executive positions.
(2) Expenses incurred to establish accruals related to the settlements of legal matters.
(3) Expenses incurred related to the restatement of prior periods in the 2023 Form 10-K.
(4) Amounts related to the conflict in the Middle East and expenses incurred for professional fees related to non-recurring matters.
(5) Calculated as a percentage of Total revenue, which was $366.7 million and $320.9 million for the thirteen weeks ended April 1, 2026 and March 26, 2025, respectively.


Exhibit 99.1
SHAKE SHACK INC.
NON-GAAP FINANCIAL MEASURES
(UNAUDITED)
Adjusted Pro Forma Net Income and Adjusted Pro Forma Earnings Per Fully Exchanged and Diluted Share
Adjusted pro forma net income represents Net income (loss) attributable to Shake Shack Inc. assuming the full exchange of all outstanding SSE Holdings, LLC membership interests ("LLC Interests") for shares of Class A common stock, adjusted for certain non-recurring items that the Company does not believe are directly related to its core operations and may not be indicative of recurring business operations. Adjusted pro forma earnings per fully exchanged and diluted share is calculated by dividing adjusted pro forma net income by the weighted-average shares of Class A common stock outstanding, assuming the full exchange of all outstanding LLC Interests, after giving effect to the dilutive effect of outstanding equity-based awards.
How These Measures Are Useful
When used in conjunction with GAAP financial measures, adjusted pro forma net income and adjusted pro forma earnings per fully exchanged and diluted share are supplemental measures of operating performance that the Company believes are useful measures to evaluate performance period over period and relative to its competitors. By assuming the full exchange of all outstanding LLC Interests, the Company believes these measures facilitate comparisons with other companies that have different organizational and tax structures, as well as comparisons period over period because it eliminates the effect of any changes in Net income (loss) attributable to Shake Shack Inc. driven by increases in its ownership of SSE Holdings, which are unrelated to the Company's operating performance, and excludes items that are non-recurring or may not be indicative of ongoing operating performance.
Limitations of the Usefulness of These Measures
Adjusted pro forma net income and adjusted pro forma earnings per fully exchanged and diluted share may differ from similarly titled measures used by other companies due to different methods of calculation. Presentation of adjusted pro forma net income and adjusted pro forma earnings per fully exchanged and diluted share should not be considered alternatives to Net income (loss) and earnings (loss) per share, as determined under GAAP. While these measures are useful in evaluating the Company's performance, it does not account for the earnings attributable to the non-controlling interest holders and therefore does not provide a complete understanding of the Net income (loss) attributable to Shake Shack Inc. Adjusted pro forma net income and adjusted pro forma earnings per fully exchanged and diluted share should be evaluated in conjunction with GAAP financial results.


Exhibit 99.1
A reconciliation of adjusted pro forma net income to Net income (loss) attributable to Shake Shack Inc., the most directly comparable GAAP measure, and the computation of adjusted pro forma earnings per fully exchanged and diluted share are set forth below.
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 interests from the assumed exchange of LLC Interests(1)
(4)268 
Impairment charges and Shack closures(2)
29 1,653 
Executive transition costs(3)
1,130 — 
Legal settlements(4)
— 983 
Restatement costs(5)
— 254 
Other(6)
99 (12)
Tax impact of above adjustments(7)
(876)(993)
Adjusted pro forma net income$88 $6,398 
Denominator:
Weighted-average shares of Class A common stock outstanding—diluted40,289 41,864 
Adjustments:
Assumed exchange of LLC Interests for shares of Class A common stock(1)
2,433 2,449 
Dilutive effect of equity awards
124 — 
Dilutive effect of convertible notes1,467 — 
Adjusted pro forma fully exchanged weighted-average shares of Class A common stock outstanding—diluted44,313 44,313 
Adjusted pro forma earnings per fully exchanged share—diluted$— $0.14 
Thirteen Weeks Ended
April 1
2026		March 26
2025
Earnings (loss) per share of Class A common stock—diluted$(0.01)$0.10 
Non-GAAP adjustments(8)
0.01 0.04 
Adjusted pro forma earnings per fully exchanged share—diluted$— $0.14 
(1)Assumes the exchange of all outstanding LLC Interests for shares of Class A common stock, resulting in the elimination of the non-controlling interest and recognition of the net income (loss) attributable to non-controlling interests.
(2)Expenses incurred related to Shack closures during fiscal 2024 and fiscal 2025.
(3)Expenses incurred in connection with the termination, search, and hiring of certain executive positions.
(4)Expenses incurred to establish accruals related to the settlements of legal matters.
(5)Expenses incurred related to the restatement of prior periods in the 2023 Form 10-K.
(6)Amounts related to the conflict in the Middle East and expenses incurred for professional fees related to non-recurring matters.
(7)Represents the tax effect of the aforementioned adjustments and pro forma adjustments to reflect corporate income taxes at assumed effective tax rates of 89.3% and 21.3% for the thirteen weeks ended April 1, 2026 and March 26, 2025, respectively. Amounts include provisions for U.S. federal income taxes, certain LLC entity-level taxes and foreign withholding taxes, assuming the highest statutory rates apportioned to each applicable state, local and foreign jurisdiction.
(8)Represents the per share impact of non-GAAP adjustments for each period. Refer to the reconciliation of Adjusted pro forma net income above for additional information.