SHAKE SHACK’S WEAK SALES SET THE STAGE FOR CHALLENGING 2026

(Bloomberg) -- Shake Shack Inc. shares slipped after the burger chain reported preliminary fourth-quarter sales below Wall Street estimates, another sign of struggles in the fast-casual restaurant sector.

Preliminary revenue in the last three months of the year was $400.5 million, below the $409 million average estimate of analysts surveyed by Bloomberg. Shake Shack blamed inclement weather in the northeast US for keeping diners away during the last six weeks of the year.

The results are likely to add to concerns that fast-casual eateries are set for another challenging year. Consumers, weighed down by higher prices and weakness in the job market, pulled back on dining out in 2025. Chains have been faced with slack consumer demand due to unfavorable weather and a challenging flu season, while limited-time offers and discounts have also increased pressure on the industry’s profits. 

Shake Shack shares fell 1.4% at 9:10 a.m. in early New York trading. The stock had declined 37% last year while the S&P Small Cap 600 Index rose 4.2%.

Sales from established locations increased 2.1% in the fourth quarter, in-line with analyst estimates, the company said in a statement Monday.

Chief Executive Officer Rob Lynch had warned of headwinds going into October during the third-quarter earnings call. Even so, the burger chain fared relatively better than some of its peers last year, recording growth in each quarter.

Chipotle Mexican Grill Inc. and Sweetgreen Inc. both saw weakness in foot traffic and sales in 2025, leading them to lower sales expectations multiple times last year. Cava Group Inc. and Wingstop Inc. cut their outlooks during the most recent reporting period, citing weakness among younger restaurant goers. 

For 2026, Shake Shack expects sales to expand by low-single digits, compared with analyst expectations for 2.4% growth. The company also plans to move forward with its expansion plans after more than tripling its long-term target for total restaurants early last year. The burger chain aims to open 95 to 105 company-operated and licensed locations this year, following a record 85 new stores in 2025.

Shake Shack provided preliminary results ahead of its presentation at the ICR Conference taking place this week in Orlando. The company is expected to report full fourth-quarter results around Feb. 20.

(Updates with additional details on 2026 outlook in eighth paragraph.)

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2026-01-12T13:01:37Z