Why Is Shake Shack Stock Gaining Today?

Author: Nabaparna Bhattacharya | October 30, 2025 12:07pm

Shake Shack, Inc. (NYSE:SHAK) shares are trading higher on Thursday after the company reported third-quarter adjusted earnings per share of 36 cents, beating the analyst consensus estimate of 31 cents.

The Danny Meyer-founded fast food restaurant reported quarterly sales of $367.411 million (+15.9% year over year). It outpaced the Street view of $364.223 million.

System-wide sales grew 15.4% year over year to $571.5 million. Same-Shack sales increased 4.9% compared with 2024.

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Quarterly Metrics

• Shack’s sales in the quarter reached $352.846 million, higher than $304.897 million a year ago.
• Licensing revenue was $14.565 million, compared with $12.027 million.
• Operating income reached $18.5 million, a sharp turnaround from an operating loss of $18.0 million in 2024.
• Restaurant-level profit in the quarter under review was $80.578 million, higher than $64.154 million in the year-ago period. Restaurant-level profit margin expanded to 22.8% from 21% in the year-ago period.
• Quarterly adjusted EBITDA was $54.141 million, higher than $45.791 million a year ago. Adjusted EBITDA margin expanded to 14.7% from 14.4%.
• The company exited the quarter with cash and equivalents worth $357.757 million.
• Shake Shack opened 13 new company-operated Shacks and seven new licensed Shacks.

Outlook

Shake Shack expects fourth-quarter sales between $406 million and $412 million, compared with the $411.661 million consensus estimate.

Shake Shack reaffirmed its fiscal 2025 revenue outlook of approximately $1.45 billion, in line with the $1.453 billion consensus estimate.

Price Action: SHAK shares are trading higher by 5.58% to $94.78 at last check Thursday.

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Posted In: SHAK