dailyloe.com – Shake Shack (NYSE:SHAK) reported its Q1 CY2026 earnings, revealing a revenue of $366.7 million. This figure represents a 14.3% increase year on year but fell short of Wall Street’s expectations of $372 million. The stock dropped 19.9% following the announcement.
The company reported a non-GAAP loss of $0 per share, significantly below the analysts’ consensus estimate of $0.12. Shake Shack’s adjusted EBITDA was $36.97 million, also below the anticipated $45.64 million, resulting in a 10.1% margin.
Furthermore, Shake Shack’s operating margin decreased to -0.7% from 0.9% in the same quarter last year. The company also posted a free cash flow of -$38.7 million, a decline from $1.87 million in the prior year.
At the end of the quarter, Shake Shack had 685 locations, an increase from 589 in the same quarter last year. Same-store sales rose by 4.6% year on year, compared to 0.2% in the same quarter last year.
Shake Shack has a market capitalization of $3.89 billion. The company began as a hot dog cart in New York City’s Madison Square Park and is known for its burgers and milkshakes.
Over the past year, Shake Shack generated $1.49 billion in revenue, positioning it as a mid-sized restaurant chain. Although this size presents challenges against larger competitors, Shake Shack has maintained high growth rates.
Shake Shack has experienced an annualized revenue growth rate of 17.1% over the last seven years. Even with Q1’s results falling short, revenue is expected to grow by 14.9% over the next 12 months.
This projection indicates market optimism regarding the company’s future performance and menu offerings. Analysts are watching closely to see if Shake Shack can regain momentum in the upcoming quarters.
