Shake Shack (SHAK) shares drop after earnings report
A sign hangs outside a Shake Shack location in Chicago, Illinois on February 21, 2025.
Scott Olson | Getty Images
Shake Shack Shares fell 30% in morning trading Thursday after the burger chain reported an operating loss of $2.6 million.
The company’s earnings and revenue also fell short of Wall Street’s expectations, according to a survey of LSEG analysts. Shake Shack said its earnings per share fell well short of Wall Street estimates of 12 cents per share. The chain also reported quarterly revenue of $367 million, but missed estimates of $372 million.
During the company’s earnings conference call, Shake Shack CEO Rob Lynch said winter storms and an increase in forecasts for store openings this year are putting pressure on the company’s quarterly earnings before interest, taxes, depreciation and amortization. The burger chain has also struggled with high beef costs, although prices haven’t risen as quickly as a year ago.
For the full year, the company expanded its EBITDA outlook to a range of $230 million to $245 million. It reiterated its revenue forecast of $1.6 billion to $1.7 billion.
Shake Shack also expects the war in the Middle East to weigh in on its consequences this year. The chain has several dozen licensed locations in the area.
“The conflict has led to business disruptions ranging from temporary closures to reduced hours to periodic delivery-only operations,” Lynch said. “Beyond these impacts, inbound tourism has slowed significantly, further suppressing sales, especially in high-traffic areas.”
