By Nicholas G. Miller

Shake Shack reported higher fourth-quarter profit and said that its sales growth and operational improvements allowed it to maintain margins amid industry headwinds.

Shares recently rose 7.2% to $98.75 in premarket trading Thursday.

The company posted net income of $11.8 million, or 28 cents a share, up from $8.71 million, or 21 cents a share, the year prior.

Adjusted earnings were 37 cents a share. Analysts polled by FactSet had expected 34 cents a share.

Revenue rose 22% to $400.5 million. Wall Street had expected $400.9 million.

Same-store sales increased 2.1%, in line with Wall Street's forecast.

The company said its sales growth and operational improvements allowed it to maintain profitability "despite macroeconomic headwinds and higher beef costs."

The increase in same-store sales marked its 20th straight quarter of positive growth, the company said, but the last six weeks of the quarter didn't meet expectations due to winter storms in some of its largest markets like the Northeast.

Shake Shack guided for first-quarter same-store sales growth of 3% to 5% and total revenue of $366 million to $370 million. It also forecast fiscal 2026 same-store sales growth of low single digits and revenue of $1.6 billion to $1.7 billion. Analysts see 2026 same-store sales growth of 2.6% and revenue of $1.64 billion.

The company also said it plans to open 55 to 60 new company-operated stores, primarily in markets outside of its historical footprint.

Shake Shack has been looking to offer more deals to attract customers who have tightened their spending on fast-casual dining. The company said it successfully drove customer acquisition and frequency through its "dollar sodas" offering.

Write to Nicholas G. Miller at nicholas.miller@wsj.com

(END) Dow Jones Newswires

February 26, 2026 08:50 ET (13:50 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.