Shake Shack cut its fiscal second-quarter revenue outlook to $415 million to $420 million from $424 million to $428 million, a reduction of $9 million to $8 million at the midpoint, as it said it was more than two-thirds of the way through the quarter.
The company also lowered its same-shack sales forecast to 2.5% to 3.0% from 3.0% to 5.0%, trimming the midpoint by 1.25 percentage points. Restaurant-level profit margin guidance for the quarter fell to 22.0% to 23.0% from 24.0% to 24.5%, a drop of 1.75 percentage points to 1.5 percentage points.
Shake Shack left licensing revenue guidance unchanged at $13.5 million to $13.7 million and kept licensed openings at about 8. Company-operated openings are now expected to be about 16, compared with a prior range of 16 to 19.
For fiscal 2026, the company narrowed restaurant-level profit margin guidance to 22.0% to 23.0% from 23.0% to 23.5%, cutting the midpoint by 1 percentage point. Adjusted EBITDA guidance was reduced to $225 million to $235 million from $230 million to $245 million, while net income guidance was lowered to $45 million to $55 million from $50 million to $60 million.
The company said its updated outlook reflects macroeconomic uncertainty and the competitive landscape. Today the company's shares have moved -2.6% to a price of $62.6414. If you want to know more, read the company's complete 8-K report here.
