By Evie Liu
Shake Shack shares plunged in Thursday trading after the company posted first-quarter revenue that missed Wall Street estimates and reported an operating loss.
For the three months ended in March, the burger chain increased revenue by 14.3% from a year ago to $366.7 million, while same-restaurant sales increased 4.6% compared with the year-ago quarter. The results missed Wall street expectations of $367 million.
The company posted an operating loss of $2.6 million, versus operating income of $2.8 million in the year-ago quarter, as higher commodity costs pressured margins. Net loss came at a cent per diluted share.
The results sent the stock down 28.3% to $69.24 on Thursday, marking the largest percent decrease since at least 2015, according to Dow Jones Market Data, and hitting the lowest close since Jan. 22, 2024, when the stock closed at $68.68. Shake Shack stock had gained 19% so far this year as of Wednesday's close.
William Blair analyst Sharon Zackfia views the stock reaction as overdone. "Longer term, we continue to view Shake Shack's growth runway as one of the strongest and most proven among emerging restaurant brands, " she wrote on Thursday.
Management said April's numbers were hurt by the Easter holiday and spring breaks, but that some marketing spending has shifted into May and June to support its new Smoky BBQ limited-time menu and upcoming World Cup promotions.
Those efforts already appear to be helping. Same-store sales growth was 8% last week, said Shake Shack, including a 5% increase in customer traffic. The company said the new BBQ menu is bringing in more customers and encouraging higher spending per visit.
Shake Shack didn't provide a specific estimate for the World Cup's impact on sales, but management suggested it could be similar to the sales boost the chain typically sees in Super Bowl host cities.
Write to evie.liu@barrons.com
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May 07, 2026 16:44 ET (20:44 GMT)
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