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SHAK is set to benefit from its upcoming debut in the Panamanian market by 2026, marking an international expansion milestone.
The Investment Committee give you their top stocks to watch for the second half.
Shake Shack's Q1 FY 2025 was its best ever, driven by strong real estate development, improved restaurant margins, and successful menu innovations. Despite a slowdown in same-store sales, Shake Shack's overall revenue grew by 10.5% year-over-year, with significant growth in emerging markets like Houston and Miami. Management expects continued growth with low single-digit same-store sales increases, 80-90 new Shack openings, and revenue projections of $1.4 billion to $1.5 billion for FY 2025.
Shake Shack has fallen ~30% this year as same-shack sales growth has slowed, with consumers finally pushing back against price increases. The company blamed Q1 weakness on the weather. In spite of weaker top-line growth, the company boosted restaurant operating margins despite sharp inflation in beef costs. The company is planning to open 45–50 new company-operated stores this year, up from a prior viewpoint of 45.