Shake Shack trimmed its fiscal second-quarter and full-year 2026 guidance on Monday, blaming macroeconomic uncertainty and a tougher competitive landscape.
Revenue for the quarter ending July 1 was guided down to a range of $415 million to $420 million, a cut from the previous target of $424 million to $428 million. The quarterly same-shack sales growth estimate dropped to a 2.5%–3.0% range from the prior 3.0%–5.0% forecast, while projected restaurant-level profit margin fell to 22.0%–23.0%, a notable step down from the earlier 24.0%–24.5% expectation.
On a full-year basis through December 30, the revised outlook calls for adjusted EBITDA of $225 million to $235 million, pulling back from $230 million to $245 million, net income of $45 million to $55 million versus a prior range of $50 million to $60 million, and a restaurant-level profit margin of 22.0%–23.0%, down from the prior 23.0%–23.5% target.
The company said it issued the updated guidance after being more than two-thirds through the current quarter. CEO Rob Lynch said the underlying business remains intact despite the revisions.
"Our updated guidance reflects the current macroeconomic uncertainty, competitive landscape, and related impacts now that we are more than two-thirds through the quarter, but it's important to emphasize that our fundamental business drivers remain strong," Lynch said in a statement. "We remain confident in our ability to execute our strategic priorities and deliver long-term shareholder value."
The number of new company-operated locations set to open in the second quarter has been pulled back to roughly 16, which represents the floor of what had previously been a 16-to-19 opening target. Licensed openings guidance was unchanged.
Shake Shack stock fell more than 10% following the update, according to The Wall Street Journal.
The company, which operates more than 690 locations globally including over 445 in the U.S., said the revised outlook reflects conditions it now expects to persist through the rest of the fiscal year. Factors cited in the filing as potential risks include tariff impacts, consumer spending changes, volatility in tourism, and broader macroeconomic conditions.