Shake Shack (SHAK) AI Stock Analysis

Shake Shack

(BMV:SHAK)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Revenue and traffic growthStrong revenue and comparable-sales growth, supported by positive traffic, indicates continued customer demand across the existing footprint. A 22-quarter streak of positive comparable sales gives Shake Shack a durable foundation for expanding revenue while new locations broaden the brand’s earnings base.

Negative Factors

Beef inflation and margin pressureElevated beef costs directly pressure the economics of a burger-led menu, while the margin decline shows that pricing and operating actions have not fully offset inflation. Persistent food-cost pressure could keep profitability thin and limit the earnings benefit of continued sales growth.

Shake Shack (SHAK) vs. SPDR S&P 500 ETF (SPY)

Market Cap: MXN 2.84B
Dividend Yield: ―
Average Volume (3M): 451
Price to Earnings (P/E): 71.7
Beta (1Y): 0.51
Revenue Growth: 6.77%
EPS Growth: 77.58%
Country: Mexico
Employees: 13,873
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Restaurants

Shake Shack Business Overview & Revenue Model

Company Description

Shake Shack Inc. manages a global network of Shake Shack restaurants, known as Shacks, through a combination of direct ownership, operation, and licensing agreements in the United States and abroad. These eateries are renowned for their menu, which f...

Shake Shack Earnings Call Summary

Earnings Call Date:Aug 04, 2026(Q2-2026)|% Change Since:24.06%|Next Earnings Date:Nov 04, 2026

Earnings Call SentimentNeutral

The call presents a balanced picture: strong top‑line growth, sustained traffic momentum, rapid digital adoption, robust unit development and healthy returns on new units highlight resilient execution. Offsetting these positives are significant cost pressures—primarily record beef inflation—higher delivery and operating expenses, some margin compression and a year‑to‑date decline in net income. Management expressed confidence in strategic investments (loyalty, Project Catalyst) and disciplined marketing, but expects back‑half headwinds to place results toward the low end of guidance ranges.

Positive Updates

Revenue and Same‑Shack Sales Growth

Total revenue $417.6M, up 17.2% year‑over‑year; Same‑Shack sales +3.5% for the quarter (comprised of +2.0% traffic and +1.5% price/mix). Company extended its streak to 22 consecutive quarters of positive comparable sales growth.

Negative Updates

Record‑High Beef Inflation and Rising Food Costs

Beef costs up mid‑teens and food & paper costs totaled $116.3M (28.8% of Shack sales), up 60 basis points year‑over‑year. Elevated beef inflation was the primary driver of restaurant‑level margin pressure.

Company Guidance

Management said it will stop providing quarterly guidance and move to an annual outlook for 2026, reaffirming the previously disclosed full‑year guidance but warning the back half will face tougher comps and continued elevated beef inflation; they expect adjusted EBITDA and net income to land at the low end of ranges (adjusted EBITDA range previously stated at $225–$235M), G&A to be 12–13% of revenue, marketing to run about 2–3% of total revenue, plan to open 60–65 company‑operated Shacks and 40–45 licensed Shacks this year, and will continue to monitor pricing actions (about 2% of pricing rolls off in August and 1.4% in December) as beef costs remain up mid‑teens and blended food & paper inflation was up low single digits in Q2.

Shake Shack Risk Analysis

Shake Shack disclosed 53 risk factors in its most recent earnings report. Shake Shack reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

Shake Shack Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

MX:SHAK against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
PTLO	60Neutral	$369.84M	24.34	2.95%	―	2.89%	-58.76%
RRGB	53Neutral	$172.21M	-5.39	29.24%	―	-3.71%	50.04%
GTIM	48Neutral	$13.62M	6.11	6.62%	―	-5.81%	78.41%
JACK	47Neutral	$249.62M	7.48	-3.65%	―	-20.21%	―
WEN	45Neutral	$1.37B	10.92	109.00%	6.80%	-0.98%	-31.26%

* Consumer Cyclical Sector Average

Performance Comparison

MX:SHAK and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
MX:SHAK	Shake Shack Inc	1315.00	-479.00	-26.70%
GTIM	Good Times Restaurants	1.29	-0.10	-7.19%
JACK	Jack In The Box	13.02	-2.97	-18.61%
RRGB	Red Robin Gourmet Burgers	9.11	4.38	92.60%
WEN	Wendy's Company	7.21	-0.71	-9.00%
PTLO	Portillo's, Inc.	4.87	-0.37	-7.06%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Shake Shack AI Stock Analysis